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UNIVERSITY  OF  ILLINOIS 
LIBRARY 


Class 


Book 


Volume 


38  U  Sa583 


Ja  09-20M  _ 


THE  GREAT  CANAL  SCRIP  FRAUD. 


MINUTES  OF  rPvOCEEDINGS, 


AND 


REPORT  OF  EVIDENCE 


IN  TUB 


INVESTIGATION    OF    THE    CASE, 


» 

BY  THE  GRAND  JURY  OF  SANGAMON  COUNTY,  ILL.,  AT  THE  APRIL 
TERM  OF  THE  COURT  OF  SAID  COUNTY,  1859. 


Orbcrtb  lo  be  p«bHshcb  bn  n  JJote  of  the  (!:r3ub|uriT. 


>  >♦« 


DAILY  JOURNAL  STEAM  PRESS, 

SPRINGFIELD,    ILL. 
1859. 


Sa5S3 


INTRODUCTORY. 


C- 


V 

y 

U- 


Tbe  Circuit  Court  of  Sangamon  county  commenced  its  session 
at  the  Court  House,  in  Springfield,  on  Monday,  April  25th, 
1859.  The  panel  of  the  Grand  Jury  selected  by  the  County 
Court,  was  as  follows : 


WILLIAM  BUTLER, 

Council  Sampson, 
WiLLrA\:  Vermillion, 
Samuel  H.  Jemison^ 
William  Crafton, 
TuoMAS  Kerlin, 
Jesse  Ruble, 
Orlando  Wadham 
C.  W.  Vanderen, 
B.  A.  Vanderen, 


Andrew  Rauch, 
Armstead  Sims, 
William  Patterson, 
Jacob  J.  fVeber, 
Harrison  Baker, 
John  L.  W^illson, 
Joseph  McDaniel, 
James  T.  Robinson y 
Abner  Wheeland, 
GeoRge  Poaver, 


AVILLIAM  a.  LOCKRIDGE,    Samuel  H.  Jones, 
John  Caldwell. 

Of  the  above,  all  except  those  whose  names  are  printed  in 

italics,  appeared  and  were   qualified  as    Grand    Jurors.     The 

names  of  those  selected  by  the  Court  to  fill  the  vacancies  are 

given  in  the  body  of  the  minutes  herewith  appended. 


'.^ 


1.39378 


MINUTES  OF  PllOCEEDINGS. 


Grand  Jury  Room,  April  27th,  1859. 
The  Prosecuting  Attorney  came  before  the  Jury  this  morning 
and  asked  their  attention,  which  was  granted.  He  then  stated 
that  he  had  a  communication  to  lay  before  the  Jury,  to  which 
he  wished  to  call  their  attention,  and,  handing  the  Foreman  a 
letter,  retired. 

The  letter  was  laid  on  the  table,  and  the  Jury  continued  the 
investigation  of  matters  then  before  them. 

During  the  day  the  Foreman  called  the  attention  of  the  Jury, 
and  read  the  following  letter  and  list  of  names  thereto  attached: 

Springfield,  Ajjril  27th,  1859. 
To  the  Grand  Jury  of  Sangamon  County: 

Gentlemen  : — The  undersigned  feel  called  upon 
to  present  to  you  for  your  consideration,  a  great  fraud  commit- 
ted upon  the  people  of  this  State,  in  the  funding  of  what  is  known 
as  "  Canal  Checks''  once  paid  by  the  State;  and  request  that 
you  will  give  the  matter  such  attention  as  the  magnitude  of  the 
offence  and  the  interests  of  the  State  demand. 

Herewith  you  will  find  a  list  of  witnesses,  with  their  residen- 
ces, whose  testimony  may  aid  you  in  your  investigation. 

Truly,  Yours,  &c., 
(Signed,)  JESSE  K.  DUBOIS, 

0.  M.  HATCH, 
JAMES  MILLER. 


WITNESSES. 


Enoch  Moore,  SprinrjfiehJ,  Illinois, 
W.M.  F.  TUORNTON,  Slu'lhijvillc,   " 

Jacob  Fry,  Ottawa,  " 
John  A.  McClerxand,  Springfield,  Illinois. 

Joel  Manning,  Lockport,  *' 

"William  II.  Brown,  Chicago^  ** 

Ezra  L.  SiieriMan,           "  " 

Michael  Kehoe,            "  " 

Josiah  McRoberts,  Jolief,  " 

Jesse  K.  Dubois,  Springfield,  " 

John  G.  Nicolay,          "  " 

Hart  L.  Stuart,  Chicago.  " 

The  Foreman  then  asked  the  Jury  if  it  was  their  desire  to  go 
into  the  investigation,  stating  that  the  witnesses  were  residing 
in  different  portions  of  the  State.  He  thought  if  they  went 
into  the  investigation,  it  would  recjuire  time  to  get  the  witness- 
es ;  he  therefore  wished  to  know  the  views  of  the  Jury,  and  for 
that  purpose,  he  would  put  the  question — All  who  were  for  pro- 
ceeding with  the  investigation,  would  rise  to  their  feet — all  rose 
up,  except  one  Juror. 

The  Jury  then  instructed  their  Foreman  to  issue  subpoenas, 
or  have  it  done,  to  the  several  counties,  returnable  on  Wednes- 
day, the  4th  day  of  May  next — except  for  the  witnesses  residing 
in  this  county — that  thoy  set  apart  Tuesday  next  for  the  exam- 
ination of  witnesses  in  Sangamon  county,  so  as  to  facilitate  the 
investigation  as  much  as  possible.  The  Jury  also  instructed 
their  Foreman  to  ask  the  Court  to  fill  the  panel  from  the  panel 
selected  by  the  County  Court — only  eighteen  being  present. — 
The  vacancies  were  afterwards  filled  by  the  Court  from  the  by- 
standers, as  follows : 

Samuel  Clark,  John  TV.  Priest, 

Washington  E.  Moore,  A.  D.  McGraw, 

Joel  Ballard,  James  Maxcy. 
Edward  Perkins. 


TESTIMONY. 


3Iay  itJiy  1859. 
Enoch  Moore  sworn. 

Question  hy  the  Foreman  of  the  Jury  : — How  long  have  you 
been  acting  as  Secretary  in  the  office  of  Fund  Commissioner  in 
this  State? 

Answer.  I  have  been  acting  in  that  capacity  sixteen  or  seven- 
teen years. 

Q.  Are  you  acquainted  with  the  different  kinds  of  indebted- 
ness of  the  State  of  Illinois  ? 

A.  I  am.  I  am  somewhat  acquainted  with  several  kinds  of  in- 
debtedness. 

Q.  Do  you  know  anything  about  a  certain  kind  of  canal  in- 
debtedness known  as  ninety-day  checks,  that  was  issued  by  the 
Canal  Commissioners,  dated  in  May  and  August,  1839  ? 

A.  I  have  seen  such  Canal  Indebtedness. 

Q.  How  many  dated  in  May,  and  how  many  in  August? 

A.  Of  the  issue  of  May,  $95,900 — amount  I  have  seen  of 
August  1st,  was  $10,900. 

Q,  Are  those  checks  you  have  described  made  payable  at 
the  Branch  Bank  of  the  State  of  Illinois  at  Chicago  ? — and,  if 
80,  to  whom  are  they  made  payable  ? 

A.  They  are  made  payable  to  the  order  of  the  Treasurer  of 
the  Illinois  and  Michigan  Canal  at  the  Branch  State  Bank  at 
Chicago. 

Q,  Are  they  indorsed  by  him — and  if  so,  to  whom  ? 

A.  They  are  generally  indorsed  by  his  name  being  written 
across  the  back. 

Q.\  Is  any  portion  of  them  indorsed  to  any  other  person — and 
if  so,  to  whom  ? 


A.  In  this  bundle  I  find  four  indorsed,  payable  to  the  ordor 
of  William  II.  Brown,  Nus.  271,  2U7,  703,  and  96,  of  date  May 
1st,  1839. 

Q.  Do  you  know  of  any  law  authorizing  the  funding  of  this 
kind  of  indebtedness — and  if  so,  when  did  it  pass? 

Q.  I  think  there  was  an  act  passed  in  the  winter  of  18-47,  au- 
thorizing the  funding  of  State  Scrip. 

Q.  "Was  this  kind  funded  under  that  law — and  if  so,  what 

amount  ? 

A.  In  October,  1854,  there  was  $300  of  this  kind  funded  ; 

and  in  July,  1856,  ^200;  and  only  in  January,  1857,  §13,300 

was  funded. 

Q.  "Whose  name  was  this  $13,300  funded  in  ? 

A.  $5,000  in  John  Kellogg's  name ;  §8,000  in  Caleb  John- 
son's name,  and  §300  in  name  of  William  Smith. 

Q.  Did  any  portion  of  this  amount  funded  as  part  of  the 
$13,300  include  the  Scrip  you  have  described  by  numbers  ? 

A.  They  did  not. 

Q.  Did  you  ever  see  any  one  of  the  persons  in  whose  name 
this  Scrip  was  funded  ? 

A.  I  don't  know  that  I  did,  except  Mr.  Smith. 

Q.  Who  handed  you  this  Scrip,  or  lots  of  Scrip,  makinf  up 
this  313,300  ? 

A.  I  don't  remember,  unless  it  was  Gov.  Matteson. 

Q.  Do  you  know  the  numbers  of  the  bonds  issued  on  this 
Scrip  ? — and  if  so,  give  us  the  numbers. 

A.  Numbers  886,  887,  888,  889,  890,  891,  892,893,804, 

895,  896,  897,  898,  and  a  part  of  the  bond  to  William  Smith— 

899.     The  bonds  were  issued  to  bearer. 

Q.  Whom  did  you  hand  these  bonds  to  ? 

A.  I  don'i  recollect. 

Q.  Have  you  ever  seen  those  bonds  since? — and,  if  so,  where? 

A.  I  have  never  seen  any  of  them  since  I  issued  them.  I  sec 
on  the  Auditor's  Book  Bond,  No.  899  as  being  in  the  Bloom- 
ington  Bank,  as  deposited  as  security  for  its  issue. 

Q.  Waathis  or  those  amounts  above  specified,  all  of  this  kind 
of  Canal  Indebtedness  funded  while  you  have  been  acting  as 
Secretary? — if  not,  how  much,  and  when  funded? 


8 

A.  Ninety-three  thousand  and  five  hundred  of  that  kind  of 
Canal  Checks  was  funded  in  March,  1857,  or  in  February  and 
March,  1857. 

Q.  By  whom  was  it  funded  ? 

A.  It  was  funded  in  several  different  names,  but  for  Gov. 
Matteson,  I  suppose. 

Q.  To  whom  did  you  hand  the  bonds  when  issued  ? — and 
why  did  you  think  they  belonged  to  Gov.  Matteson  ? 

A.  I  don't  remember  who  I  banded  them  to,  but  from  con- 
versation between  me  and  Gov.  Matteson  I  understood  the  bonds 
were  for  himself — from  conversation  that  took  place  between 
me  and  him. 

Q.  Can  you  give  us  the  numbers  of  the  bonds  issued  on  this 
$93,500  of  Canal  Checks? 

A.  They  are  from  900  to  992  inclusive,  and  one-half  of  993. 

1^.  What  amount  of  interest  was  on  those  Checks  up  to  the 
date  of  their  being  funded — that  is,  this  last  ^93,500. 

A.  $45,729. 

Q.  Did  the  Canal  Checks  indorsed  to  William  H.  Brown, 
Cashier  of  the  Branch  Bank  of  the  State  of  Illinois,  as  identi- 
fied by  you  by  numbers,  constitute  any  portion  of  this  last  ?93,- 
500  ? — and,  if  so,  what  bond  did  it  go  into  ? 

A.  The  Scrip  or  Checks  identified  by  me,  indorsed  to  Wil- 
liam H.  Brown,  Cashier,  does  constitute  a  portion  of  the  ^93,- 
500  ;  and  Check  No.  703  constitutes  a  part  of  Bond  No.  931 ; 
and  Check  Nos.  96  and  271  constitute  a  part  of  Bond  933  ;  and 
Check  No.  207  constitutes  a  portion  of  Bond  934. 

Q.  What  was  done  with  the  interest  due  on  the  Checks  up  to 
the  date  of  their  being  funded  ? 

A.  Interest  Certificates  was  issued  for  it  up  to  July,  1847. 

Q.  Were  they  numbered  ? — and,  if  so,  give  us  their  numbers. 

A.  They  were  numbered  from  1,206  to  1,248,  inclusive. 

Q.  In  whose  name  were  they  issued  ? 

A.  In  the  same  name  the  bonds  were  issued  in. 

Q.  Has  any  portion  of  them  ever  been  funded  ? — and^  if  so, 
in  whose  name  were  they  funded  1 

A.  The  most  of  them  have  been  funded,  and  in  the  name  of 


9 

the  Auditor  of  Public  Accounts,  in  trust  for  the  State  Bank  of 

Illinois. 

Q.  What  amount  has  been  so  funded,  and  their  respcctiro 
numbers? 

A.  It  I  am  correct,  about  ^84,884  has  been  funded.  The 
numbers  of  the  certificates  making  uj)  that  amount  are  from  1206 
to  1200,  1211  to  1237,  inclusive,  and  Xos.  1239  and  1240. 

Q.  Tell  us  the  numbers  of  the  interest  bonds  that  the  Scrip 
you  have  just  described  constitutes,  and  to  whoin  -were  they  is- 
sued. 

A.  They  constitute  Interest  Bonds  numbered  from  37  to  69, 
inclusive,  and  most  part  of  30  and  70.  They  were  issued  to  tho 
Auditor  of  State  in  trust  for  the  State  Bank  of  Illinois. 

Q.  I  see  near  ten  thousand  of  the  interest  certificates  yet  un- 
accounted for.     Can  you  tell  us  what  became  of  them  ? 

A.  Nos.  1241  to  1248,  amounting  to  $8,555,  funded  and  in- 
terest bonds  issued  for  them.  Nos.  162  to  169,  inclusive,  and 
part  of  170  to  the  Auditor  of  Public  Accounts,  in  trust  for  State 
Bank  of  Illinois. 

Q.  I  see  in  the  first  part  of  your  statement  you  mention  $500 
of  this  kind  of  indebtedness  as  being  funded  in  October,  1854. 
By  whom  was  it  funded  ? 

A.  It  was  funded  by  N.  II.  Ridgley. 

Q.  Do  you  know  whether  this  is  now  claimed  as  being  coun- 
terfeit ? — and,  if  so,  has  suit  been  commenced  for  its  value  or 
for  the  amount  it  was  issued  for? 

A.  I  understand  it  is  said  to  be  counterfeit,  and  that  the 
Auditor  has  commenced  suit  for  it. 


May  m,  1859. 

Testimony  of  Exocn  Moore  continued. 

Question.  Do  you  know  of  any  other  Scrip  having  been  fun- 
ded by  Gov.  Matteson  ? — and,  if  so,  state  what  kind  and  by 
whom  funded. 

Anstver.  Yes,  there  were  other  kinds  than  the  Canal  checks. 

Q.  Was  there  any  funded  of  the  denomination  known  as  Ca- 


10 

nal  90  day  checks,  other  than  the  $93,500  spoken  of  yesterday 
in  your  testimony  ? 

A.  Yes,  there  was. 

Q.  Do  you  know  what  kind  of  Checks  was  funded  in  the 
$13,300  funded  in  January,  1857,  spoken  of  in  the  preceding 
part  of  your  testimony  ? — and,  it"  so,  describe  them  and  produce 
the  Checks  if  in  your  possession,  and  give  us  their  numbers. 

A.  Here  are  the  Checks — they  are  numbered — or  those  with- 
out the  Treasurer's  name  in  the  body  of  the  Check — fi'om371  to 
397,  and  from  399  to  406,  inclusive,  and  fi^m  408  to  410,  in- 
clusive— they  are  all  dated  August  1st,  1839. 

Q.  What  do  they  amount  to  ? 

A.  $4,400 — they  are  all  one  hundred  dollar  Checks. 

Q.  Can  you  give  us  the  numbers  of  the  Bonds  issued  upon 
the  funding  of  those  Checks  you  have  just  described? 

A.  They  are  part  in  Bond  No.  886,  all  of  Bonds  887,  888, 
889,  and  part  of  890. 

Q.  State  to  whom  were  these  Bonds  issued,  and  f»r  whose 
benefit,  if  you  know? 

A.  They  were  issued  to  John  Kellogg,  and  I  do  not  know 
but  they  were  for  him. 

Q.  Who  was  it  handed  you  the  Scrip  for  funding? 

A.  I  think  it  was  Gov.  Matteson.  I  think  it  was  his  place 
to  receive  it,  as  he  was  ex-affieio  Fund  Commissioner  at  the 

time. 

Q.  Has  anything  transpired  since  the  funding  of  the  Scrip 
above  alluded  to,  to  give  you  any  impression  who  these  Bonds 
actually  belonged  to  at  the  time  they  were  funded?  and  if  so, 
state  what  it  is. 

Mr.  Meggs  (a  juror)  objected  to  the  above  question  being 
answered  by  the  witness. 

The  question  being  then  referred  to  the  Jury,  it  was  decided 
to  be  a  proper  question. 

A.  I  don't  know  anything  has  transpired  to  give  me  any 
ditterent  impression  than  that  I  had  at  the  time  they  were 
funded,  I  have  understood  they  were  sent  on  to  New  York 
to  be  sold  for  Gov.  Matteson. 


11 

Q.  By  Mr.  i^rcGraw.     Who  did  you  undcrstjind  that  from ! 

A.  Mv.  O.  F.  Lowe,  of  Now  York,  wrote  to  mo  to  that 
eftect. 

Q.  Have  you  that  letter  ? 

A.  I  linve.  it  at  the  State  House. 

(>,  Will  you  ]iroduco  it  i 

A.  I  will,  if  the  Jury  will  f^ive  me  time.  Here  is  the  letter 
marked  "  B." 

(OOPY  OF  LETTER  MARKED  "  B.") 

New  Yokk,  March  10.  1859, 
95  Wall  Street. 

Dkar  Sin : — Tour  favor  of  tho  4th  came  to  hand,  and  I  am  surprised  there  was  any 
he»ita:ion  in  rc;j;nrd  to  funding  tlio  Canal  Scrip  under  the  law  of  1S57.  If  tho  Scrip 
is  gcuuino  and  the  law  has  not  been  repealed,  there  is  no  course  for  the  Governor  to 
pursue  but  to  fund,  as  desired.  If  he  declines  to  do  so,  you  will  oblige  me  bypupply- 
iug  Interest  Stock  for  such  porlio#  of  the  arrears  as  he  chooses  to  discriminate  in 
favor  of.  I  trust  he  will  determine  to  fund  all,  as  I  do  not  care  to  have  a  small  parcel 
that  may  be  repudiated  by-aud-by. 

I  have  been  fully  advised  as  to  tho  Canal  Scrip  investigation,  and  although  much 
feeling  has  been  excited  here  in  regard  thereto,  I  am  truly  pleased  to  inform  you 
that  your  position  in  the  matter  has  not  impaired  tho  ro  peet  heretofore  felt  for  you 
by  all  who  have  experienced  your  courtesy  and  attention.  Tho  extremely  censorious 
hint  that  there  was  collusion  somewhere  ;  but  no  one,  so  far  as  I  know,  has  been  so 
uncharitable  as  to  connect  your  name  improperly  with  the  transaction.  My  business 
and  friendly  relations  with  Gov.  Matteson  have  suggested  to  tho  unkindly-disposed 
that  I  might  have  known  of  the  fraud  before  it  was  revealed,  or  at  the  time  of  its 
consummation,  and  perhaps  profited  thereby ;  but  this  opinion  is  confined  to  that 
class  whoso  mischievous  propensity  is  greater  than  their  powvr  to  fix  defamation  upon 
character.  Soon  after  the  issue  of  the  first  Bonds  for  the  90  day  Scrip,  I  sold  for 
Gov.  Matteson  eighteen  Bonds,  Nos.  882  to  899.  A  part  of  these  (SS6  to  899)  were 
improperly  issued,  and  are  now  held  by  some  Banks  in  Illinois  or  Wisconsin.  Can 
you  inform  me  what  Banks  own  them  now?  You  can  ascertain  in  tho  Auditor's 
oflSce. 

If  tho  Governor  has  approved  tho  law  removing  tho  agency,  Ac,  I  would  bo  obliged 
for  a  copy,  and  also  for  instructions  how  to  act  as  a  Com'r.  for  Illinois.  About  tho 
loth  March,  1855,  Mr.  Osgood  receipted  for  tho  books,  Ac,  to  W.  A  S.  and  J.  Wads- 
worth,  and  at  the  same  time  tho  American  Exchange  Bank  receipted  to  Gov.  Matteson 
and  Mr.  0.     Copies  of  all  the  receipts  and  statements  were  furnished  the  Governor. 

I  remain,  very  truly. 

Your  friend, 

0.  F.  LOWE. 
E.vocH  Moore,  Esq., 

Springjitldy  HI. 


12 

Q.  Is  the  foregoing  a  correct  statement  of  your  testimony 
as  concercing  the  thing  therein  stated  ? 

A.   Substantially  correct. 

Q.  Did  Gov.  Bissell  examine  this  $93,500  funded  since  he 
came  into  office,  that  was  handed  you  by  Gov.  Matteson  ? 

A.  I  do  not  remember  certainly  whether  I  showed  him  any 
part  ol  it  before  it  was  funded. 


3fay  Gtli,  1859. 

Jacob  Fky  called,  appeared  in  Grand  Jury  Room  and 
sworn. 

Q.  How  long  have  you  resided  in  Illinois  ? 

A.  1  have  resided  here,  or  in  this  State,  forty  years,  I  think. 

Q.  Have  you  been  acting  as  C^liml  Commissioner  in  this 
State  ?  and  it  so,  when  did  you  commence  and  when  did  you 
cease  acting  in  that  capacity  ? 

A.  1  commenced  acting  as  Commissioner  in  March,  1837, 
and  ceased  acting  as  Canal  Commissioner  when  Trustees,  or 
Board  of  Trustees,  of  Illinois  and  Michigan  Canal  was  organ- 
ized, which  took  place  in  May,  1SI5,  if  I  am  not  mistaken.  I 
was  then  appointed  by  Gov.  Ford  as  State  Trustee,  and  acted 
in  that  capacity  up  to  June,  1846  or  '47. 

Q.  AVere  the  affairs  of  the  Canal  during  the  time  you  were 
acting  either  as  Trustee  or  Commissioner  such  as  to  require 
you,  acting  in  conjunction  with  others,  to  issue  any  kind  of  in- 
debtedness to  contractors  or  other  persons  to  whom  the  Canal 
was  indebted  ? 

A.  The  affairs  of  the  Canal  were  such  as  required  the  Board 
of  Canal  Commissioners  to  issue  both  Scrip  and  Checks. 

Q.  Had  you  the  power,  or  were  you  authorized  by  law,  to 
issue  the  kind  of  Checks  that  were  issued  May  1st  and  August 
1st,  1839  ? 

A.  We  had — they  were  issued  by  authority  of  law. 

Q.  Can  you  state  the  amount  issued  in  May  1st,  1839  ? 

A,  Of  the  regular  Checks  of  the  May  issue,  ^219,324  ;  and 


18 

of  what  •VTG  termed  tlie  irregular  Checks,  $'40,735 — making  a 
total  of  $2(5'J,OoU.  The  irregular  Checks  were  Checks  issued 
to  a  contractor  on  the  Canal  f<»r  the  amount  due  him,  or  in 
such  Bums  as  he  called  tor.  W  a  balance  was  due  him  over  and 
above  the  sjiecitic  amount  he  had  called  for  in  one  check,  we 
l)aid  him  what  we  called  regular  checks  for  the  balance.  The 
regular  Checks,  both  of  the  May  antl  August  issue,  were  issued 
in  sun)s  from  $1  to  $2,  $o,  •'rilO,  ^50  and  $100.  The  May 
issue  was  all  made  payable  to  the  order  of  J(»lm  A.  McCler- 
nand,  Treasurer,  and  the  August  issue  to  John  Calhoun, 
Treasurer.  The  August  issue  was  all  $100's— of  those  denomina- 
ted the  regular  Checks.  All  the  Checks  of  the  May  and  August, 
1830,  issue,  were  made  payable  ninety  days  from  date,  at  the 
Branch  Bank  of  Illinois,  at  Chicago,  Three  thousand  eight 
hundred  and  twenty-two  dollars  of  the  regular  May  issue  was 
registered  and  charged  to  the  Treasurer,  liut  never  put  in  cir- 
culatit)n. 

Q.  Here  are  some  Checks,  purporting  to  be  of  the  l^Fay 
issne,  Nos.  703,  271,  d6,  207, — are  they  a  portion  of  the  May 
issue  you  have  been  describing  ? 

-.1,  They  are. 

Q.  Have  you  any  of  the  Checks  of  the  August  issue  you 
have  been  describing? — if  so,  show  them  to  the  Jury, 

A.  1  have,  here.  TJacy  are  three  in  number;  being  Nos. 
125,  922,  0-40.     They  are  genuine,  I  think. 

Q  How  many  of  the  August  issue  have  you  now  in  your 
hand  of  the  denomination  of  $100? 

A.  Forty-four — all  hundreds. 

Q.  Did  the  Board  ever  issue  them  ? 

A.  They  never  did — they  never  put  them  in  circulation. 

Q.  Please  give  me  the  numbers. 

A.  They  are  Nos.  371,  372,  373,  374,  375,  37(5,  377,  378, 
379,  3S0,  381,  382,  383,  384,  386,  386,  387,  388,  380,  390,  301, 
302,  303,  304,  395,  306,  397,  399,  400,  401,  402,  403,  404, 405, 
406,  408,  400,  410,  411,  412,  413,  414,  415,  416. 

Q.  Do  you  recognize  this,  or  those  Canal  or  Bank  Checks, 


1^ 

as  yon  term  tliem,  as  the  same  you  have  been  describing,  as 
of  the  May  or  Angust  issue  of  1839  ? 

A.  I  do. 

Q.  Have  they  ever  been  paid,  of  your  own  knowledge  ? 

A.  They  were  paid  by  tlie  Bank.  YV  e  had  the  money  there 
for  that  purpose — they  took  them  up  and  charged  us  with  the 
amount.  Gen.  Thornton  took  up  about  one  hundred  thousand 
dollars  of  the  May  and  August  issue,  as  I  now  recollect. 

Q.  Has  all  of  the  May  and  August  issue  been  paid  and  taken 
up  ?     If  not,  what  amount  remains  outstanding  ? 

A.  When  I  was  superseded,  in  1847,  they  were  all  paid  and 
taken  up  except  §315  of  the  May  issue ;  and  I  reported  the 
fact  to  the  Governor  and  he  laid  it  before  the  Legislature,  as  I 
see  it  has  been  published. 

Q.  Did  you  ever  caution  the  State  officers  against  receiving 
any  of  this  kind  of  State  or  Canal  indebtedness,  saying  it  had 
all  been  taken  up,  except  $315  ?— and  if  so,  when  did  you  warn 
them  ? 

A.  During  the  session  of  our  last  Legislature,  Mr.  Campbell, 
of  La  Salle,  showed  me  a  $100  Cheek  of  the  May  issue,  and  asked 
me  if  I  knew  about  this.  I  told  him  I  knew  it  was  a  counter- 
feit—that there  were  no  $100  Checks  in  circulation — they  have 
all  been  paid  and  taken  up  many  years  ago.  I  then  wrote  to 
Mr.  Manning,  calling  his  attention  to  it,  and  told  him  my  re- 
collection of  the  matter  was  that  it  was  all  paid,  and  asked  him 
if  I  was  correct — he  answered  me,  I  was  correct.  I  then  went 
and  told  Col.  Dubois  about  it,  and  put  them  on  their  guard 
about  it.  Mr.  Dubois  then  called  for  Mr.  Moore,  and  asked 
him  if  any  of  this  kind  of  stuff  had  been  funded.  Mr.  Moore 
remarked  that  a  good  deal  had  been  funded.  This  was  the 
first  I  ever  heard  of  the  fraud. 

Q.  "Was  Joel  A.  Matteson  a  contractor  on  the  Canal  at  any 
time  while  you  were  acting  as  one  of  the  Commissioners  ? 

A.  He  was. 

Q.  Did  you,  or  any  one  of  the  Board,  ever  pay  him  for  work 
done  on  the  Canal  with  Scrip  or  Checks  of  the  May  or  August 
issue  ? 


16 

A.  I  can't  Eay  whether  any  of  the  Checks  above  spoken  of 
were  e\'er  paid  to  Joel  A.  Matteson,  but  my  impression  now 
is  that  there  was  some  of  the  kind  paid  to  him. 

Q.  Tell  the  Jury  what  you  know — if  anything — about  the 
00  day  checks  of  the  regular  issue  of  date  May  Ist  and  August 
1st,  1830,  of  all  denominations,  after  they  were  paid  olf  and 
returned  to  the  Canal  Ollice. 

^1.  "We  got  a  box  made  and  put  all  the  Checks  in  it  that 
were  redeemed  up  to  that  time — the  90  day  Checks  of  May 
and  August  issue.  The  denominations  that  were  issued  were 
$1,  $-2,  $5,  $10,  $50  and  $100.  I  speak  of  the  regular  Checks. 
There  may  have  been  irregular  Checks  in  the  box — my  im- 
pression is,  there  were — they  were  tied  up  in  bundles  with  an 
envelop  around  them,  and  the  amount  of  each  package  marked 
on  the  envelop.  A  schedule  of  the  amount  of  each  bundle 
•was  made,  one  copy  of  which  was  packed  up  with  the  Checks 
in  the  box — another  copy  was  kept  by  the  Canal  Board.  The 
box  was  nailed  and  wrapped  with  red  tape — an  auger  hole 
bored  in  the  edge  of  the  box  where  the  lid  and  side  join  to- 
gether— the  hole  filled  with  red  sealing  wax,  and  the  impres- 
sion of  the  official  seal  of  the  Board  placed  upon  it.  The  box 
was  then  taken  to  Chicago  by  Mr,  Manning,  the  Secretary  of 
the  Board,  and  deposited  in  the  vault  of  the  Branch  of  the 
State  Bank  at  Chicago — remained  there  during  my  continuance 
in  office  as  State  Trustee,  which^  if  my  recollection  serves  me, 
was  in  May  or  June,  1817. 

Q.  About  what  time  was  this  box  packed  ? 

A.  My  recollection  is,  it  was  packed  in  December,  1840. 

Q.  Have  you  any  further  knowledge  about  it? — if  so,  state 
all  you  know. 

A.  When  I  was  superseded  by  Col.  Oakley,  I  took  his  re- 
ceipt for  it — I  have  no  further  knowledge  of  it. 

Q.  Have  you  any  knowledge  of  any  other  box  being  in  the 
Bank,  and  cuntaining  property,  or  anything  else  belonging  to 
the  Canal  Board  t — and  if  so,  please  tell  the  Jury  all  you  know 
about  it. 

^1.  There  was  a  small  box,  about  the  size  of  a  candle  bo;( 


16 

packed  by  Col.  Manning,  some  time  in  1812,  containing  Canal 
Sight  Checks  and  others  of  various  denominations.  There 
might  have  been  some  Scrip  in  it.  A  schedule  was  made  of 
the  number  of  packages  and  the  amount  of  each  package,  and 
a  copy  left  with  the  Board  of  Canal  Commissioners,  and  the 
box  turned  over  to  Col.  Oakley,  and  his  receipt  taken.  The 
aggregate  amount  of  Checks  and  Scrip  in  the  box  was  a  little 
over  $25,000. 

Q.  By  W.  E.  Moore.  Do  you  positively  know  that  the 
packages  put  in  the  first  named  box  contained  the  amount 
marked  on  their  respective  envelops  ? 

A.  I  would  not  undertake  to  say  positively  that  they  did — - 
I  did  not  count  them — but  I  have  no  doubt,  in  my  own  mind, 
but  that  they  did  contain  the  amounts  so  marked  on  the  en- 
velops. 


May  7th,  1859. 

Mr.  Joel  Manning  sworn. 

Q.  Have  you  been  acting  as  Secretary  to  the  Board  of 
Commissioners  of  Illinois  and  Michigan  Canal,  and  if  so, 
how  long  ? 

A.  I  acted  as  Secretary  of  the  Board  from  the  time  of  its 
organization  till  it  went  out  of  the  hands  of  the  State  into  the 
hands  of  the  Trustees — from  the  winter  of  1836  to  the  summer 
of  1845. 

Q.  Do  you  know  anything  about  a  certain  class  of  Canal 
indebtedness,  issued  by  the  Board,  denominated  90  day 
Checks — issued  first  of  May,  1839,  and  first  of  August, 
1839? 

A.  Those  issued  first  of  Maj,1839,  we  denominated  on  our 
books  as  90  day  Checks,  No.  1  ;  and  those  of  August,  90  day 
Checks,  No.  2. 

Q.  Tell  the  Jury  what  amount  of  90  day  Checks,  No.  1, 
was  issued  or  put  into  circulation,  of  the  May  issue. 

A.  What  we  call  the  regular  Checks  are  of  the  denomiua- 


17 

tions  of  $1,  $2,  $5,  $10,  $50  and  $100.  The  irregular  Checks 
are  those  issued  to  contractors  in  such  amounts  as  they  re- 
quested. 

Q.  What  amount  of  the  re<j:uhir  Checks  of  tlic  May  issue 
was  issued,  and  what  amount  was  put  into  circuhition  ? 

A.  Of  this  description  of  Checks  there  were  $219,324  made, 
put  into  the  hands  of  the  Secretary,  and  charfjed  on  the  books 
to  the  Secretary  and  entered  upon  the  register ;  but  as  they 
were  not  all  needed,  only  $215,502  were  put  in  circulation. 
Three  thousand  eight  hundred  and  twenty-two  dollars  re- 
mained in  the  hands  of  the  Secretary,  in  sheets,  and  not 
cut  up. 

Q.  "What  amount  of  the  August  issue  of  the  regular  Checks 
was  issued  and  j)ut  into  circulation  ? 

A.  There  was  $30,000  in  Checks  of  $100  each,  fully  execu- 
ted, charged  to  the  Secretary,  and  put  into  circulation,  and  I 
believe  there  were  as  many  as  three  packages  containing  one 
hundred  Checks  each,  of  the  same  denomination,  which  was 
partially  executed — some  more,  some  less  complete — which 
were  never  charged  on  our  books  or  put  into  circulation,  and 
considered  and  treated  by  us  as  blank  Checks. 

Q.  Were  all  of  these  Checks  made  ])ayable  at  the  Branch 
Bank  of  the  State  of  Illinois  at  Chicago  ? 

A.  I  think  they  were  all  made  payable  at  the  Bank  of  Illi- 
nois at  Chicago,  to  the  order  of  the  Treasurer — those  of  the 
May  issue  to  the  order  of  John  A,  McClernand,  and  those  of 
the  August  issue  to  John  Calhoun. 

Q.  IIow  many  of  the  Checks  you  have  been  describing,  of 
the  May  and  August  issue  of  1839,  have  been  paid  ? 

A.  All  but  §315. 

Q.  What  was  done  with  them  after  they  were  paid  and 
taken  up  ? 

A.  Upon  the  return  of  the  Checks  to  the  office,  they  were 
carefully  counted,  entered  on  the  register  as  returned,  and  the 
anujunt  entered  on  the  books  of  the  office,  the  Checks  them- 
selves deposited  in  the  safe,  with  the  amounts  noted  on  the 

3— 


18 

wrappers  of  the  several  packages.  This  was  done  each  time, 
as  these  Checks  were  returned.  They  remained  in  the  safe 
until  December,  184:0,  when  a  box  having  been  prepared  for 
the  purpose,  they  were  tak.^n  from  the  safe  and  carefully  re- 
examined by  Gen.  Fry,  myself  and  Mr.  McFarlane,  my  clerk, 
and  lists  taken  specifying  the  amounts  in  the  packages,  and 
then  these  packages  containing  all  these  Checks,  at  the  time 
or  up  to  that  time  returned  to  the  office,  were  put  into  the 
boXjtogether  with  other  Checks,  so  returned,  and  withdrawn 
from  circulation,  with  a  copy  of  the  said  list  put  into  the 
box,  also  one  into  the  safe.  The  box  was  then  closed  and 
sealed  up,  and  taken  by  me  to  Chicago  and  delivered  to  the 
Branch  Bank  there,  to-be  put  into  their  vault  for  safe  keeping. 
At  the  time  of  packing  up  the  Checks,  as  above  stated,  there 
were  seven  hundred  and  twenty-two  dollars  of  them  still  not 
returned,  part  of  which  were  subsequently  returned,  so  as  to 
reduce  this  amount  to  three  hundred  and  fifteen  dollars,  as  I 
have  before  stated. 

Q.  Please  state  to  the  Jury  whether  you  had  that  box 
made  —if  so,  describe  it  as  minutely  as  possible,  and  how  it 
was  sealed. 

A.  I  had  the  box  made  for  the  express  purpose  of  packing 
the  Checks  in  it.  It  was  of  pine  boards,  at  least  an  inch 
thick,  something  like  two  feet  square,  a  little  less  than  that  in 
height.  The  box  was  sealed  by  countersinking  and  filling 
with  sealing  wax,  either  over  the  screws  or  nails  which  fast- 
ened on  the  lid  and  bottom,  or  across  the  seams  between  the 
lid  and  bottom,  so  that  they  could  not  be  taken  ofi"  without 
breaking  the  wax,  and  upon  this,  while  soft,  was  impressed  the 
public  seal  of  the  Canal  office. 

Q.  Did  this  box  you  have  been  describing  contain  the  May 
and  August  issue  of  what  you  term  the  regular  90  day 
Checks  ? — and  if  so,  are  any  part  of  this  bundle  the  same 
Checks  you  put  into  that  box  ? 

A.  I  put  into  the  said  box  all  of  the  said  Checks  which  had 
been  returned  to  the  office  up  to  that  time,  and  most  of  the 


19 

Checks  now  befoi-c  me,  brou.fjlit;  in  by  the  Auditor,  are  the 
same  that  were  packed  in  tlie  box. 

Q.  Was  any  portion  of  these  packed  in  the  box  canceled  at 
the  time  they  were  packed  ? 

A.  We  i)acked  the  Checks  as  we  received  them  from  the 
Bank— those  of  the  denominations  of  ^50's  and  ^lOO's  were 
not  cut  with  a  cancelin<^  hammer— a  part  of  the  smaller  de- 
nominations might  have  been— I  do  not  now  recollect.  In 
the  condition,  in  this  respect,  as  we  received  them,  so  we  put 
them  into  the  box,  and  1  tind,  among  the  Checks  now  on  the 
table  before  me,  none  of  any  denominations  except  fifties  and 
hundreds  of  the  said  issues  of  May  and  August. 

Q.  You  spoke  of  Checks  of  the  August  issue,  as  being  par- 
tially tilled  and  put  in  three  or  more  bundles,  often  thousand 
dollars  each — ])lease  tell  the  Jury  what  became  of  them,  it 
you  know — and  were  they  canceled  when  you  last  saw  them  ? 

A.  When  we  packed  the  box  of  which  I  have  been  speak- 
ing, we  intended  to  put  in  all  the  Checks  of  the  said  two 
issues,  then  in  the  office,  and  we  did  put  in  those  which  had 
been  circulated  and  returned,  the  sheets  of  the  May  issue 
which  were  executed  but  never  circulated,  and  also  all  the 
unfinished  Checks  of  the  August  issue — and  at  the  same  time 
we  i)ut  them  into  the  box  they  were  not  cut  with  a  canceling 
hammer  nor  in  any  other  way  defaced. 

Q.  Was  the  Scrip  of  the  August  issue  which  you  now 
have  in  your  possession,  numbering  in  consecutive  Nos.  from 
371  to  397,  399  to  40G,  and  408  to  416,  put  into  the  box  you 
have  been  describing  ? 

A.  The  Checks  before  me  for  examination,  of  the  numbers 
above  mentioned,  were  of  the  unlinisiied  Checks  of  the  August 
issue,  mentioned  in  mv  former  answer.  I  do  not  recollect  at 
the  time,  of  noticing  these  particular  numbers,  but  as  we  did 
number  quite  a  quantity  of  them,  of  these  unfinished  Checks, 
sutiicient  to  e.xtend  to  and  beyond,  I  think,  those  numbers,  and 
as  we  put  all  these  incomplete  Checks  into  the  box,  I  am  quite 
certain  these  wore  put  into  the  box  with  the  others. 


20 

Q.  Were  those  ever  put  into  circulation  by  any  person  or 
persons  since  they  were  put  into  the  box ;  or,  in  other  words, 
have  you  ever  seen  any  of  this  kind  of  unfinished  Checks  in 
circulation  ? 

A.  I  have  never  seen  any  of  the  Checks  mentioned  in  my 
last  answer  in  circulation,  and  I  would  not  think  they  could" 
be  circulated  in  the  unfinished  and  incomplete  condition  in 
w^hich  they  are. 

Q.  Please  tell  the  Jury  the  mode  adopted  by  the  Board  of 
numbering  those  Checks  of  the  May  and  August  issue  you 
have  been  speaking  of— the  denominations  of  $50  and  $100  ? 

A.  When  we  numbered  the  May  issue  of  fifty  and  hundred 
dollar  Checks,  we  began,  "A.  No.  1,"  "A.  No.  2,"  and  so  on 
through  the  whole,  ending  with  No.  866  ;  and  when  we  began 
numbering  the  August  issue,  which  were  all  hundreds,  we 
began  where  we  left  off  in  May,  the  first  number  being  "A. 
No.  867,  868,"  and  so  on  regularly  up  to  No.  1,000,  and  then 
began  "  B.  No.  1,"  "  B.  No.  2,"  in  regular  order,  through  all. 
We  numbered  both  finished  and  unfinished  Checks  of  that 
issue. 

Q.  Do  you  know  anything  about  any  other  box  that  con- 
tained any  portion  of  the  small  issue  of  Checks  of  either  the 
May  or  August  issue?  If  so,  please  tell  us  all  you  know 
about  it,  and  if  it  contained  canceled  Checks  or  uncanceled 
Checks  ? 

A.  In  the  spring  of  1841  Gen.  Fry  requested  me  to  go  to 
Chicago  and  receive,  on  the  part  of  the  Board,  the  small  at 
sight  Checks  issued  by  the  Board  upon  the  Bank,  of  the  de- 
nomiuation  of  $1?  $2  50  and  $5,  count  the  same,  pack  them 
in  a  box  and  deposit  the  box  in  the  Bank  vault.  I  did  so, 
carefully  counting  these  Checks,  put  up  in  a  number  of  pack- 
ages, and  the  several  amounts  marked  thereon.  These  pack- 
ages, when  the  counting  was  completed,  were  put  into  a  small 
box.  A  list  of  these  packages,  with  their  amounts,  was  taken 
by  Mr.  Howe,  Clerk  in  the  Bank,  one  copy,  I  think,  put  into 
the  box  and  one  I  received,  and  which  I  now  have,  and  the 


21 

date  of  the  filin£C  of  it  is  April  28, 1S42.  This  is  what  we  call 
box  No.  2,  l)ut  lias  by  some  been  called  the  candle  box,  and 
wjUs  a  tox  of  about  the  size  and  description  of  aconnnon  candlo 
box.  This  box,  after  being  thus  packed,  was  fastened  and 
sealed  u\)  and  left  with  the  I'ank.  After  these  Checks  were  thus 
counted  they  were  all  cut  with  a  canceling  hammer — I  believe 
by  Mr.  Howe;  if  not  by  him,  by  Mr.  Brown,  the  Cashier. 

Q.  Do  you  know  of  any  other  fact  going  to  throw  light  or 
information  on  the  fraud  that  has  been  committed  upon  the 
State,  which  has  not  been  brought  before  the  Jury  by  questions 
that  have  been  propounded  to  you  ? 

A.  I  do  not  now  recollect  anything  of  the  kind. 


Jfaij  St/i,  1859. 

William  II.  BroWn  sworn. 

Q.  Have  you  ever  acted  in  the  capacity  of  Cashier  of  the 
Chicago  Branch  of  the  State  Bank  of  Illinois  ?  If  so,  when 
and  how  long  i 

A.  I  was  appointed  Cashier  in  1835,  and  opened  the  Branch 
in  Chicago  in  the  fall  of  that  year,  and  continued  in  the  Bank 
until  it  was  finally  closed  about  the  year  1845  or  184G. 

Q.  Was  the  Bank  the  fiscal  or  paying  agent  of  the  Board 
of  ('anal  Commissioners? — and  if  so,  please  examine  the  Canal 
Scrip,  or  as  they  are  mofe  frequently  termed.  Bank  Checks  of 
the  May  and  August  issue,  and  state,  if  you  can,  whether  they 
M'ere  })aid  by  the  Bank. 

A.  The  Chicago  Branch  was  the  fiscal  and  paying  agent  of 
the  Canal  Commissioners,  and  their  funds  were,  from  time  to 
time,  deposited  in  that  ]^)ank  and  paid  upon  the  Checks  drawn 
by  the  Treasurer  of  the  Board  in  the  usual  course  of  business, 
like  the  Checks  of  other  depositors.  I  have  examined  the 
Checks  of  the  May  and  August  issues,  now  lying  before  mo 
on  the  table,  and  I  cannot  say  which  of  the  individual  Checks 
were  paid  by  the  liank.  The  whole  issue  of  the  May  Checks 
was  between  $300,000  and  $400,000.     Of  this  amount,  it  ap- 


22 

pears  by  the  books  of  tlie  Bank,  which  I  Lately  examined,  that 
$170,000,  or  thcreabonts,  were  paid  by  the  Bank  on  or  before 
the  16th  of  September,  1839,  and  returned  to  the  Canal  Com- 
missioners, and  the  Treasurers  Check  taken  therefor  and 
charged  to  his  account. 

Q.  Examine  those  Checks  of  the  May  issue,  Nos.  207,  96, 
271,  703,  and  answer  whether  those  identical  Checks  were  or 
were  not  paid  by  the  Bank  ?  Please  state  to  the  Jury,  on  ex- 
amining the  bundles  or  pile  on  the  table,  whether  you  identify 
any  others  as  having  been  certainly  paid  by  the  Bank. 

A.  I  have  examined  the  four  Checks  numbered  207,  96, 
271  and  703,  all  of  which  are  specially  indorsed  to  me  by  the 
previous  indorsers.  These  Checks  must  have  been  paid  by 
the  Bank,  though  I  cannot  positively  say  they  were,  and 
speak  now  from  my  knowledge  ot  Banking  business.  By  the 
indorsements,  specially,  Nos.  96  and  371,  I  have  no  hesitation 
in  saying,  must  have  been  received  by  me,  through  the  mail, 
from  J.  A.  Welles,  Esq.,  then  Cashier  of  the  Farmers'  and 
Mechanics'  Bank  of  Detroit,  whose  signature,  from  my  per- 
sonal acquaintance  with  him,  and  from  a  numerous  correspon- 
dence, I  am  as  familiar  with  almost  as  my  own,  and  whose 
signature  upon  the  Checks  I  fully  recognize.  I  identify  many 
other  Checks,  among  the  bundles  of  Checks  upon  the  table, 
as  having  passed  through  the  Bank,  by  being  especially  in- 
dorsed to  me,  as  Cashier,  from  other  Banking  Institutions  in 
Ohio,  Indiana,  and  from  the  Alton  Branch  of  the  State  Bank. 

Q.  Did  yon  ever  put  in  circulation  any  one  of  those  Checks 
you  especially  identified  by  numbers,  or  any  part  of  those  re- 
ceived and  paid  by  the  Bank  ?  If  not,  please  tell  the  Jury 
what  disposition  was  made  of  them  by  the  Bank. 

A.  I  never  put  into  circulation  any  of  the  Checks  I  have 
identified  as  above,  or  any  other  of  the  Checks  issued  on  Mayor 
Auo-ust  1st,  1839.  These  Checks  were  counted  as  cash  in  our 
daily  cash  settlements,  and  sufi'ered  to  accumulate  until  the 
Canal  Treasurer,  Col.  McClernand,  called  for  them,  when 
they  were  delivered  to  him,  and  he  gave  his  Check,  as  Treas- 


23 

urer,  for  tlie'amount  of  the  Checks  handed  over  to  him.  The 
Checks  I  identify  were  phaeed  in  the  vault  with  those  paid  at 
the  counter,  while  the  accounts  of  Banks  sendinf^  them  were 
duly  credited.  For  some  reason,  which  I  cannot  recollect, 
the  May  and  August  Checks  were  not  canceled,  as  they  should 
have  been,  in  the  regular  course  of  business,  but,  as  I  said 
before,  were  counted  as  cash  until  delivered  to  the  Treasurer. 

Q.  Did  Mr.  Manning  ever  deposit  any  box  with  the  ]3ank 
for  which  he  took  their  receipt?  If  so,  when  and  how  long 
did  it  remain  there?  State  to  the  Jury  if  you  have  any  recol- 
lection of  any  box  being  at  the  Bank,  for  safe  keeping,  belong- 
ing to  the  Canal  Office.  If  so,  how  long  did  it  remain  in 
possession  of  the  Bank,  by  what  name  was  it  known  and  what 
did  it  contain  ? 

A.  I  think  in  December,  1841,  Mr.  Manning  deposited  in 
the  Bank,  for  safe  keeping,  a  heavy  square  box,  containing 
Canal  papers — of  what  kind  I  never  knew.  Mr.  Howe,  my 
Clerk,  gave  him  a  receipt  for  it.  Mr.  Manning  also  deposited 
a  box,  which  looked  like  a  candle  box,  and  I  think  a  paper 
parcel.  I  do  not  know  what  papers  were  in  the  candle  box 
or  paper  parcel.  The  square  box  and  candle  box  and  paper 
parcel  were  safely  kept  in  the  vault  of  the  Bank  until,  I  think 
the  year  1849.  I  then  called  upon  the  Canal  Trustee,  or 
some  one  in  his  office,  and  requested  their  removal.  A  per- 
son was  sent  from  the  Canal  Office,  and  the  square  box,  can- 
dle box  and  bundle  were  delivered  to  him.  The  boxes,  while 
in  my  possession,  were  never  opened  by  me,  or,  as  I  believe 
by  Mr.  Howe,  my  clerk.  For  the  last  five  years  I  had  exclu- 
sive possession  of  the  keys  of  the  vault,  and  it  was  not  opened 
by  any  one  but  myself. 

Q.  Please  examine  this  bundle  of  imfinished  Checks,  as 
they  are  termed,  of  the  August  issue,  forty- four  in  number,  of 
the  denomination  of  $100  each,  and  say  whether  you  think  a 
man  of  ordinary  business  capacity  would  receive  them  in  their 
present  condition,  or  attenqit  to  pay  them  out  ?  If  not,  please 
tell  the  Jury  your  reason  for  coming  to  that  conclusion. 


24 

A.  I  have  examined  the  fortj-four  Checks  of  the  August 
issue  handed  me  by  the  Foreman  of  the  Grand  Jury,  and 
answer  that  I  do  not  think  a  man  of  ordinary  business  capacity 
would  receive  or  pay  out  these  checks.  The  reason  I  give  is, 
tliat  they  have  every  appearance  of  an  unfinished  Clieck,  made 
to  be  issued  \vhen  occasion  required.  The  name  of  the  payee 
is  inserted  in  the  blank,  and  the  edges  of  the  Checks  uncut. 
If  any  or  all  of  these  Checks  had  been  presented  for  payment 
at  the  Bank,  I  should  have  declined  to  receive  them — though 
the  Treasurer's  account  might  be  good — until  I  had  made  in- 
quiries of  the  proper  officers. 

Q.  Are  you  acquainted  with  Joel  A.  Matteson  ?  If  so, 
please  tell  the  Jury  whether  you  look  upon  him  as  a  man  of 
ordinary  business  capacity. 

A.  I  have  been  acquainted  with  Joel  A.  Matteson  for  a 
number  of  years,  and  have  always  supposed  him  to  be  a  man  of 
ordinary  capacity — at  least  for  the  transaction  of  business. 

Q.  Are  you  in  possession  of  any  further  information  relative 
to  the  investigation  of  the  case  of  fraud  under  consideration 
of  this  Jury  that  the  questions  put  have  not  brought  out?  If 
80,  please  tell  the  Jury  what  it  is. 

A.  I  do  not  recollect  of  any  facts  pertinent  to  the  investiga- 
tion I  have  not  stated. 

Michael  Kehoe  sworn. 

Q.     Have  you  ever  acted  as  porter  for  the  Canal  Office  ? 

A.  Yes. 

Q.  How  long  did  you  act  in  that  capacity? 

A.  It  was  from  November,  18-17,  to  April,  1853. 

Q.  Do  you  know  anything  of  two  boxes  that  were  once 
kept  at  the  Branch  State  Bank  of  Illinois,  at  Chicago,  and 
belonged  to  the  Canal  Office? 

A.  Yes,  sir,  I  do ;  and  two  packages,  also,  wrapped  in 
brown  paper. 

Q.  Tell  the  Jury  all  you  know  about  those  two  boxes  and 

packages. 


25 

A.  Some  time  in  the  year  of  184S  Col.  Oakley  gave  rae  an 
order  and  sent  me  down  to  the  old  State  Bank,  on  the  corner 
of  South  Water  street  and  La  Salle,  for  the  boxes  and  two 
packages.  AV".  J  I.  Brown  gave  them  to  me,  and  I  put  them 
on  a  dray  and  brought  them  to  the  State  Trustee's  Office,  on 
the  corner  of  "Wells  and  Lake  streets,  and  gave  them  to  Col. 
Oakley.  I  think  the  packages  were  put  in  the  safe  and  the 
boxes  put  by  the  side  of  the  safe.  They  remained  in  the 
office  up  to  April,  1853.  Mr.  McRoberts  was  appointed 
State  Trustee  at  that  time.  Mr.  McRoberts  and  niyselt  packed 
what  was  in  the  two  boxes  and  the  two  packages,  also  what 
was  in  the  safe,  into  one  trunk  and  a  box.  They  were  directed 
to  "Gov.  Matteson,  Springfield,  Illinois."  I  took  them  to  the 
Rock  Island  R.  R.  Depot,  by  the  directions  of  Mr.  McRob- 
erts, and  gave  them  to  him.  They  were  put  in  the  baggage 
car.     That  was  the  last  seen  of  them. 

Q.  By  Mr.  Lockridge.  Please  state  what  condition  those 
two  boxes  you  have  described  were  in  when  you  and  Mr.  Mc- 
Roberts went  to  send  them  off. 

A.  The  candle  box  was  something  slmck  (shaken  or  broken) 
in  one  corner  with  standing  on  it  at  the  Canal  Sales,  the  office 
was  so  thronged  with  people.  Thomas  Bradford  looked  at 
the  corner  of  it  to  see  what  was  in  it  one  time.  I  believe  he 
said  it  was  Canceled  Scrip. 

Q.  Have  you  ever  seen  the  box  or  trunk  since  you  put  them 
in  the  car  ?     If  so,  where  ? 

A.  I  seen  the  trunk  last  February,  in  the  State  House, 

JosiAH  McRoBEETS  swom. 

Q.  State  when  you  became  connected  with  the  Canal  Office 
as  State  Trustee — who  was  your  predecessor — what  did  you 
receive  from  him  at  the  time  you  took  possession  of  the  office 
— what  did  vou  do  with  the  contents  of  the  office,  includins: 
boxes,  books  and  papers  ? 

A.  I  was  api)ointed  State  Trustee  in  February,  1853  ;  took 
possession  of  the  Canal  Office  about  the  first  of  A})ril.  Josei)h 
B.  Wells  was  my  predecessor.     I  received  from  him  all  the 


26 

books,  papers,  vouchers  and  the  general  contents  of  the  office. 
He  delivered  to  me  two  small  boxes.  One  of  them  was  open 
at  the  time.  I  went  from  Joliet,  my  place  of  residence,  to 
Chicago,  where  the  office  was  then  kept,  on  Friday,  I  think. 
On  Saturday  Gov.  Wells  delivered  the  office  and  its  contents 
into  my  possession.  I  examined  the  box  that  was  open, 
and  found  that  it  contained  canceled  ninety  day  Bank 
Checks.  I  examined  several  of  the  packages  in  the  box,  and 
found  they  did  not  hold  the  amount  marked  on  the  wrappers. 
Some  of  the  wrappers  were  entirely  gone,  and,  from  the 
appearance  of  the  box,  some  of  the  packages  had  been  taken 
out.  While  examining  this  box  Gov.  Wells  came  in,  and  I 
called  his  attention  to  the  fact  that  the  packages  did  not  hold 
out;  to  which  he  replied  in  about  this  language :  "JSTo;  and 
there  is  nothing  about  the  office  that  will  come  within  gun- 
shot of  what  it  purports  to  count." 

Before  receiving  the  office  from  Gov.  Wells  he  stated  to  me 
what  was  in  the  office  ;  said  there  were  some  boxes  and  pack- 
ages of  Scrip,  that  should  be  sent  to  Springfield  and  deposited 
in  the  State  Department,  and  advised  me  to  send  it  down  to 
Gov.  Matteson.  I  saw  Gov.  Matteson,  a  few  days  after,  and 
stated  to  him  what  Gov.  Wells  had  advised  in  regard  to  a 
disposal  of  the  Scrip.  lie  said  "very  well,  send  it  down," 
and  he  would  deposit  it  in  the  State  Department. 

I  then  returned  to  Chicago,  (on  Friday,  I  think,)  and  on 
Saturday  received  the  office  and  its  contents  from  Gov.  Wells. 
I  directed  Michael  Kehoe,  who  was  the  porter  in  the  office,  to 
meet  me  at  the  office  on  Sunday  morning,  and  we  would  pack 
up  what  was  to  be  sent  to  Springfield.  Kehoe  came,  on  Sun- 
day morning,  and  we  took  a  large,  black  trunk  which  was  in 
the  office  and  packed  in  a  part  of  the  packages.  We  saw  the 
trunk  would  not  hold  all  that  was  to  be  sent.  Kehoe  procured 
a  shoe  box,  as  I  now  remember,  and  we  packed  the  packages 
and  the  contents  of  the  box  that  had  been  broken  open  in  the 
trunk  and  shoe  box — a  part  in  each  or  the  whole  in  one  or  the 
other.  I  also  received  a  sealed  box  from  Gov.  Wells,  which 
had  the  impression  of  the  seal  of  the  old  Board  of  Commis- 


27 

eioners  upon  it.  Kelioe  and  myself  tried  to  put  the  sealed 
box  first  in  the  trunk.  It  would  not  go  in.  We  then  tried 
to  put  it  ill  the  shoe  box,  but  found  that  the  lid  would  not  go 
upon  it.  We  took  it  out,  and  I  think  Kehoo  opened  it  with  a 
small  axe.  We  found  it  contained  packages  done  up  between 
two  pieces  of  paste-board  cut  the  size  of  the  box.  The  pack- 
ages were  laid  in  between  the  pieces  of  paste-board.  The 
paste-boards  were  then  wrapped  with  tape  or  twiue,  and,  I 
think,  sealed  with  sealing  wax.  We  cut  the  tape,  took  out 
the  packages  and  put  a  i)art  in  the  trunk  and  a  part  in  the 
shoe  box,  or  the  whole  in  one  or  the  other,  but  cannot  state 
which.  Kehoe  and  I  did  not  examine  the  contents  of  this 
sealed  box.  I  did  not  know  what  the  contents  were.  There 
were  certain  packages  of  Scrip  in  the  safe,  which  we  also  took 
out  and  packed  in  the  box  and  trunk,  a  part  in  each  or  the 
whole  in  one  or  the  other.  We  put  everything  contained  in 
the  two  small  boxes,  the  contents  of  the  several  packages,  and 
all  the  Scrip  in  the  safe  into  the  trunk  and  the  shoe  box.  We 
then  nailed  the  shoe  box  and  locked  the  trunk,  and,  I  think, 
sealed  them  with  wax,  but  cannot  state  certainly.  Kehoe 
went  out  and  procured  a  marking  pot  and  brush,  and  I  marked 
on  the  box  "J.  A.  Matteson,  Springfield,  Illinois,"  and  put  a 
card  on  the  end  of  the  trunk  with  a  similar  direction.  I  then 
directed  Kehoe  to  meet  me  at  the  Depot  of  the  Kock  Island 
Railroad  on  Monday  morning.  I  found  Kehoe  there  with  the 
trunk  and  box.  I  put  them  into  the  baggage  car  and  went 
with  them  to  Joliet,  where  I  met  Gov.  Matteson,  and  informed 
him  that  I  had  a  box  and  trunk  which  were  to  be  sent  to  the 
State  Department.  I  went  with  him  to  La  Salle,  took  the 
box  and  trunk  along  and  there  delivered  them  to  Gov.  Matte- 
son. He  had  them  put  into  the  baggage  cart  to  take  them 
across  the  Illinois  River  to  the  Central  Depot.  This  ended 
my  connection  with  the  box  and  trunk,  and  is,  I  believe,  all  I 
know  in  regard  to  them. 


28 

May  9ih,  1859. 

Jesse  K.  Dubois  sworn. 

Q.  Are  you  Auditor  of  the  State  of  Illinois  ? 

A.  I  am. 

Q.  Are  you,  or  is  it  made  your  duty  by  law,  to  hold  for  the 
protection  of  the  issues  of  the  several  Banks  in  the  State,  the 
Bonds  that  the  law  rc(|uires  shall  be  deposited  for  that  pur- 
pose! 

A.  The  control  of  all  the  Bonds  deposited  for  circulating 
notes  are  placed  under  my  control  and  direction — they  are  de- 
posited by  law  in  the  Treasurer's  office,  for  safe  keeping. 

Q.  Are  you  in  possession  of  Bonds  No.  886,  887,  888,  889, 
890,  891,  892,  893,  894,  895,  896,  897,  898  and  899  ? 

A.  The  Auditor's  office  is  not  in  the  possession  of  the  above 
Bonds,  nor  were  they  ever  in  the  office  to  the  credit  of  any  of 
the  various  Banks,  to  my  knowledge.  It  is  possible  they  may 
be — if  so,  I  have  not  been  able  to  find  them. 

Q.  Have  you  any  instrument  of  writing  now  in  your  posses- 
sion, that  proves,  to  your  mind,  that  those  Bonds,  above  allud- 
ed to  by  numbers,  constitute  any  part  of  the  late  fraud  that  is 
said  to  have  been  committed  on  the  State  ? 

A.  I  have  a  Mortgage,  given  by  Joel  A.  Matteson  and 
wife,  made  pursuant  to  an  Act  of  the  Legislature,  acknowledg- 
ing the  Bonds  886  tt  899,  inclusive,  to  be  a  part  of  the  fraudu- 
lent Scrip  funded. 

Q.  Have  you  in  your  possession  that  Mortgage,  alluded  to 
in  your  last  answer? — and  if  so,  please  show  it  to  the  Jury 
and  attach  it  to  the  answer. 

A.  I  have — and  an  authenticated  copy  is  hereunto  attached: 

COPY. 

This  indenture,  made  and  entered  into  this  21st  day  of  April,  A.  D.  1859,  between 
Joel  A.  Matteson  and  Mary  Matteson,  his  wife,  of  the  County  of  Sangamon  and  State 
of  Illinois,  of  the  first  part,  and  the  People  of  the  State  of  Illinois,  of  the  second 
part, 

Witnesseth:  that  the  said  party  of  the  first  part,  for  and  in  consideration  of  the 
passage  by  the  People  of  the  State  of  Illinois  represented  in  the  General  Assembly, 
of  an  Act  entitled  "An  Act  to  indemnify  the  State  of  Illinois,  against  loss  by  reaaon 


29 

of  unlawful  funding  of  Canal  Indebtedness,"  and  for  nnd  in  conRidcrntion  of 
tlie  privili'fft's  and  adviintni;os  and  extension  of  tinn'  secured  to  snid  Joel  A. 
Matlesoa  by  said  act,  and  for  tlio  further  consideration  of  the  sum  of  one  dollar 
to  the  party  of  the  first  part  in  hand  paid,  have  pivcn,  grunted,  biirj^'uined 
and  sold  and  by  these  presents  grant  bargain  and  sell  to  the  said  party  of 
the  second  part,  certain  tracta  or  parcels  of  lands  lying  and  being  in  the  City  of 
(Juincy,  in  the  Coiiiity  of  Adams,  in  the  Slate  of  Illinois,  designated,  known  and  de- 
Bcribed  as  follows,  towit :  Lot  eight  (N)  in  block  sixteen  (ItJ)  in  the  original  town 
(now  city)  of  tiuiiiey  :  Lots  four  and  sixtten  Neviu's  Addition  to  the  City  of  Quincy  ; 
and  the  cast  half  of  Ulock  lifty-six  in  John  Wood's  Addition  to  the  town  (now  citv)  of 
t^uincy,  to  have  and  to  hold  the  said  tracts  or  parcels  of  land  to  the  said  [)artv  of  the 
second  pari  forever.  And  the  said  Joel  A.  Matteson,  for  himself,  his  heirs  and 
assigns,  executors  and  administrators,  covenants  and  agrees  that  he  is  lawfully  seized 
of  an  indefeasible  estate  in  fee  simple  in  and  to  said  tracts  of  lands  aforesaid  ;  that 
the  same  are  free  from  all  incumbrances;  that  he  will  forever  warrant  and  defend 
the  same  to  the  party  of  the  second  part  and  their  assigns  against  the  claims  of  all 
persons  whatsoever;  and  that  until  the  conditions  of  this  Mortgage  are  fully  per- 
formed he  will  pay  promptly  all  taxes  assessed  on  said  lands,  and  will  keep  all  the 
improvements  on  said  lands  fully  insured  in  some  solvent  Insurance  Office,  and  will 
assign  to  the  party  of  the  second  part,  as  additional  security,  the  policies  of  Insurance 
on  said  improvements  us  soon  as  taken. 

Yet  this  deed  is  made  on  the  following  conditions :  That  if  the  said  Joel  A.  Matteson 
shall  indemnify  and  save  harmless  the  State  of  Illinois  from  all  liability  on  account 
of  the  Uonds  of  said  State,  numbered  from  Nine  Hundred  to  Nine  llundred  and 
Ninty-two,  inclusive,  and  one  half  of  Nine  IJundred  and  Ninety-three,  of  Illinois  and 
Michigan  Canal  Honds,  and  now  deposited  with  the  Auditor  as  security  for  tlie  re- 
demption of  the  bills  or  notes  and  payment  of  other  liabilities  of  the  State  I5ank  of 
Illinois  at  Shawueetown ;  and  also  on  account  of  Bonds  of  said  State  numbered  886  to 
898,  inclusive,  and  three  hundred  dollars  in  Bond  number  S99,  the  same  being  Bonds 
designated  as  Illinois  and  Michigan  Canal  Bonds,  and  now  outstanding,  and  for  all 
moneys  that  may  be  paid  by  the  State  thereon,  and  from  all  liability  upon  any  certi- 
ficates, interest  bonds  or  other  evidences  of  indebtedness  that  may  have  been  issued 
on  account  of  any  of  the  Bonds  aforesaid  or  the  Canal  Scrip  for  which  said  Bonds 
were  issued,  and  on  any  Coupons  now  or  hereafter  attached  to  said  Bonds  or  any  of 
them,  and  from  all  costs,  expenses  and  damages  that  may  accrue  against  said  State 
by  reason  of  the  said  Bonds,  Certificates,  Interest  Bonds,  Coupons  or  other  evidences 
of  Indebtedness  ;  and  shall  also  repay  to  the  State  of  Illinois,  within  five  years  from 
the  nineteenth  day  of  February,  18')9,  any  money  that  has  been  heretofore  paid  by 
the  said  State  of  Illinois,  on  account  of  said  Bonds,  Certificates,  Interest  Bonds, 
Coupons  or  other  evidences  of  Indebtedness,  or  for  Interest  on  the  Canal  Checks  or 
Scrip,  upon  which  .said  Bonds  were  issued,  or  in  the  purchase  by  the  State  of  any  of 
said  Bonds,  Certificates,  Interest  Bonds,  Coupons  or  other  evidences  of  Indebtedness 
arising  out  of  the  funding  of  said  Canal  Checks  or  Scrip,  upon  which  said  Bonds  were 
issued,  together  with  six  per  cent,  per  annum  interest  on  each  and  every  sum  of 
money  paid  by  the  State  upon  such  Bonds,  Certificates,  Interest  Bonds,  Coupons  or 
other  evidences  of  Indebtedness,  or  for  said  interest,  or  in  the  purchase  of  any  of  the 
said  Bonds,  Certificates,  Interest  Bonds,  or  other  evidences  of  Indebtedness,  to  be 
computed  Ironi  the  time  when  any  such  sums  of  money  shall  have  been  paid  :  And 
if,  at  any  time,  the  Governor,  Audito.  and  Treasurer  of  the  State  of  Illinois  shall  be- 
lieve that  the  security  given  by  said  Joel  A.  Matteson  has  depreciated  and  that  the 
some  ha&  become  inadequate,  they  may  require  the  said  Joel  A.  Muttesod  to  give  ad- 


30 

ditional  security,  and  in  case  said  Joel  A,  Matteson  shall  not  give  such  additional 
security,  within  sixty  days  afte"  a  notice  in  writing  shall  have  been  given  him  by  said 
Governor,  Auditor  and  Treasurer  so  to  do,  then  the  sum  of  money  secured  to  the 
State  as  aforesaid  shall  immediately  become  and  be  deemed  due  and  payable  from  the 
time  of  such  default.  Now,  if  the  said  Joel  A.  Matteson  shall  well  and  truly  keep 
and  perform  all  the  aforesaid  conditions,  then  this  deed  of  Mortgage  to  be  void;  else 
to  remain  in  full  force  and  virtue. 

In  testimony  whereof,  the  said  party  of  the  first  part  have  hereunto  Bet  their  hand! 
and  seals,  the  day  and  year  first  above  written. 

JOEL  A.  MATTESOX,     [seal] 
MARY  MATTESON.        [seal] 

State  of  Tllixois,  ) 

Sunyamon  Coiinti/,  VsSi 

City  of  Springfield.    ) 

Before  me,  the  undersignrd,  a  Notary  Public  in  and  for  said  city,  personally  ap- 
peared Joel  A.  Matteson  and  Mary  Matteson,  his  wife,  wlio  are  personally  known  to 
me  to  be  the  real  persons  by  whom  and  In  whose  names  the  above  conveyance  was 
executed,  and  by  whom  and  in  whose  names  the  same  is  proposed  to  be  acknowl- 
edged, and  who  acknowledged  their  signatures  thereto  to  be  their  free  and  voluntary 
act  and  deed,  for  the  uses  and  purposes  therein  expressed.  And  the  said  Mary  Mat- 
teson, wife  of  the  said  Joel  A.  Matteson,  having  been  by  me  made  acquainted  with 
the  contents  of  said  conveyance,  and  by  me  examined  separate  and  apart  from 
her  Slid  husband,  acknowledged  that  she  executed  the  same,  and  forever  relinquished 
her  right  to  the  claim  of  dower  in  and  to  the  lands  and  tenements  therein  mentioned, 
freely,  voluntarily  and  without  compulsion  or  coercion  of  her  said  husband. 

In  testimony  whereof  I  have  hereunto  set  my  hand  and  seal  this 

[seal]        23d  day  of  April,  A.  D.  1859i 

JOHN  W.  BUNN, 

Notary  Puhlie^ 


Nok  3145. 


State  of  Illinois,         ) 


Adams  County. 

Received  for  record  and  recorded,  April  27th,  A.  D.  1859,  in  Book  N,  of  Mortgages, 
On  pages  550,  551  and  552. 

Attest,  THOS.  W.  McFALL, 

Recorder. 
By  E.  B.  BARKER, 

i)eputy. 

Auditor's  Office,  Illinois, 

Springfield,  May  6th,  1859. 

I,  Jesse  K,  Dubois,  Auditor  of  Public  Accounts  of  the  State  of  Illinois,  hereby 
certify  that  the  foregoing  is  a  correct  copy  of  the  original  Mortgage,  from  Joel  A, 
Matteson  and  wife,  to  the  People  of  the  State  of  Illinois,  now  in  my  possession  as 
Auditor. 

In  testimony  whereof,  I  have  hereunto  set  my  hand  and  official 
[seal]        seal,  the  day  ond  year  above  written. 

JESSE  K.  DUBOIS, 
Auditor, 


31 
The  above  deed  is  indorsed  as  follows; 

Adams    County. 
Murtgnije  Deed. 
Joel  A.  Matteson  oud  Wife, 

TO 

The  People  of  the  State  of  illinoia. 

Q.  Have  you  or  had  you  at  any  time  since  the  fraud  was 
connnitted  any  other  mort^a^i^es,  of  which  the  one  you  have  at- 
tached is  a  true  copy,  except  the  one  you  have  shown  to  tho 
Jury  I — and  if  so,  please  state  where  they  are. 

A.  On  the  25th  of  April  last,  I  sent,  by  express,  mortgages 
simiUir  to  the  one  hereunto  attached,  varying 'only  in  the  de- 
scription of  property,  to  the  several  Recorders  of  Cook,  Will, 
La  Salle,  Bureau,  Peoria  and  Vermilion  counties,  and  city  of 
Cairo,  and  delivered,  in  person,  one  to  the  Recorder  of  San- 
gamon county,  all  of  which  mortgages  have  not,  as  yet,  been 
returned  to  my  office  by  said  Recorders. 

Q.  Have  you  any  other  mortgage  in  your  possession,  given 
to  secure  the  State  against  the  said  fraud,  other  than  the  ones 
you  have  last  spoken  of? — if  so,  please  attach  it  or  a  certified 
copy  to  your  answer  as  a  part  thereof. 

A.  I  have  a  mortgage  or  indemnifying  bond,  executed  by 
J.  A.  Matteson,  Roswell  E.  Goodell,  John  McGinness,  jr., 
and  Charles  S.  Matteson,  and  an  authenticated  copy  is  here- 
unto annexed : 

COPY. 

In  purBuanco  of  the  prorisions  of  an  act  passed  by  the  People  of  tho  State  of  Illi- 
nois represented  in  the  General  Assembly,  entitled  "  An  act  to  indemnify  the  State  of 
Illinois  against  loss  by  reason  of  unlawful  funding  of  Canal  Indebtedness,"  approved 
February  19,  1S59,  and  for  tho  purpose  of  securing  to  tho  undersigned,  Joel  A.  Mat- 
teson, tho  benefit  of  the  provisions  of  said  act  and  the  extension  of  time  therein 
granted,  We,  Joel  A.  Matteson,  principal,  and  Roswell  E.  Goodell,  John  McGinness, 
jr.,  and  Charles  S.  Matteson,  securities,  jointly  and  several'y  agree  and  bind  ourselves 
to  indemnify  and  save  harmless  tho  People  of  tho  State  of  Illinois  from  all  liability 
on  account  of  Bonds  of  tho  .State,  numbered  from  nine  hundred  to  nine  hundred  and 
ninety-two,  inclusive,  and  one-half  of  nine  hundred  and  ninety-three  of  Illinois  and 
Michigan  Canal  Bonds,  now  deposited  with  tliu  Auditor  as  security  of  the  bills  or 
notes  and  payment  of  other  liabilities  of  tho  State  Bank  of  Illinois  at  Shawnoetown  ; 
and  also  on  Bonds  of  laid  State,  numbered  SS6  to  8U8,  inclusive,  and  three  hundred 


32 

dollars  in  Bond  899,  the  same  being  Bonds  designated  as  Illinois  and  Michigan  Canal 
Bonds,  and  now  outstanding,  and  for  all  moneys  that  may  be  paid  by  the  State  of 
Illinois  thereon,  aud  from  all  liability  upou  any  Certificates,  Intcres't  Bonds,  or  other 
evidences  of  Indebtedness  that  may  have  been  issued  on  account  of  any  of  the  Bonds 
aforesaid,  or  the  Canal  Checks  or  Scrip  for  which  Bonds  were  issued,  and  on  any 
Coupons  now  or  heretofore  attached  to  said  Bonds,  or  any  of  them,  and  from  all  costs, 
expenses  and  damages  that  may  accrue  against  the  State  of  Illinois  by  reason  of  the 
eaid  Bonds,  Certificates,  Interest  Bonds,  Coupons,  or  other  evidences  of  Indebtedness; 
and  also,  we  jointly  and  severally  agree  and  bind  ourselves  to  repay  to  the  State  of 
Illinois,  within  five  years  from  the  19th  day  of  February,  1859,  any  money  that  has 
heretofore  been  piiid  by  the  State  on  account  of  said  Bonds,  Certificates,  Interest 
Bonds,  Coupons,  or  other  evidences  of  Indebtedness,  and  for  the  interest  on  the  Canal 
Checks  or  Scrip  upon  which  said  Bonds  were  issued,  aud  in  the  purchase  by  the  State 
of  any  of  said  Bonds,  Certificates,  Interest  Bonds,  Coupons,  or  other  evidences  of  In- 
debtedness, arising  out  of  the  funding  of  said  Canal  Checks  or  Scrip,  upon  which 
gaid  Bonds  were  issued,  together  with  six  per  cent,  per  annum  interest  on  each  and 
every  sum  of  money  paid  by  the  State  upon  such  Bonds,  Certificates,  Interest  Bonds, 
Coupons  or  other  evidences  of  Indebtedness,  or  for  said  interest,  or  in  the  purchase 
of  said  Bonds,  Certificates,  Interest  Bonds  or  other  evidences  of  Indebtedness,  or  any 
of  them,  to  be  computed  from  the  time  when  any  such  sum  or  sums  of  money  «hall 
have  been  paid.  And  if  at  any  time  the  Governor,  Auditor  and  Treasurer  of  the 
State  of  Illinois  shall  believe  that  thesecuriiy  given  by  the  said  Joel  A.  Mattcson  has 
depreciated,  and  that  the  same  has  become  inadequate,  and  shall  require  of  the  said 
Joel  A.  Matteson  to  give  additional  security,  and  said  Mattcson  shall  not  give  such 
additional  security  within  sixty  days  after  a  notice  in  writing  shall  have  been  given 
him  by  the  said  Governor,  Auditor  and  Treasurer  so  to  do,  then  the  sum  of  money 
secured  to  the  State  as  aforesaid  shall  become  and  be  deemed  due  and  payable  from 
jthe  time  of  such  default. 

Witness  our  hands  and  seals,  this  21st  day  of  April,  1859. 

J.  A.  MATTESON,  [seal] 

ROSWELL  E.  GOODELL,  [seal] 
JNO.  McGINNESS,  Jr.,  [seal] 
C.  S.  MATTESON,  [seal] 

Attest,  S.  T.  LOGAN. 

State  op  Illinois, 

Auditor's  Office. 

I  Jesse  K.  Dubois,  Auditor  P.  A.   of  Illinois,  do  hereby  certify  that  the  above 
and  foregoing  is  a  true  copy  of  the  original  document  now  in  my  possession  as 

Auditor, 

Given  under  my  hand  and  official  seal,  at  Springfield,  this  6th  day 

[seal]         of  May,  1859. 

JESSE  K.  DUBOIS, 

Auditor. 

Q.  By  Mr.  W.  E.  Moore.  "What  were  those  mortgages 
given  for,  wbicli  you  have  described  in  the  two  foregoing  an- 
swers ? 


33 

A,  They  were  given  in  accordance  with  an  act  of  the  last 
Legislature,  entitled  "An  act  to  indemnify  the  State  of  IllU 
nois  ao-ainst  loss  bv  reason  of  unlawful  funding  of  Canal  In- 
debtedness,"  approved  February  19th,  1S59. 

Q.  By  Mr.  W.  E.  Moore.  Do  you,  or  do  you  not,  know 
that  Gov.  Matteson  has  been  in  the  habit,  for  some  time  past, 
of  purchasing  Canal  Scrip  or  90  day  Canal  Checks  and  various 
other  kinds  of  State  Indebtedness  ? 

A.  I  never  heard  him  or  any  other  person  talk  about  there 
being  such  an  Indebtedness  as  ninety  day  Canal  Checks  or 
Scrip,  until  Gen.  Fry  showed  me  one  in  February  last  (said 
to  be  counterfeit).  I  have  often  heard  Gov.  Matteson  say  he 
wanted  to  purchase  State  Indebtedness  to  place  as  security 
in  his  Banks,  but  do  not  now  remember  that  I  ever  saw  him 
purchase  any. 

Q.  By  Mr.  Geo.  Power.  If  the  Bonds  funded  under  Gov. 
French,  or  any  other  Governor  previous  to  Gov.  Matteson 
could  be  traced  to  the  person  or  persons  for  whose  benefit 
they  were  funded — and  if  it  was  not  Gov.  Matteson  who  in- 
augurated the  present  system  of  funding,  so  as  to  be  able 
to  trace  for  whose  benefit  they  were  funded  and  by  whom 
funded  ? 

A.  The  funding  of  the  State  Indebtedness  not  being  in  any 
manner  connected  with  the  Auditor's  Ofiice,  I  have  no  know- 
ledge how  or  in  what  manner  the  same  has  been  done,  except 
occasionally  seeing  Mr.  Moore  at  his  desk,  he  being  the  Sec- 
retary of  the  Fund  Commissioner,  who  is  Governor  of  the 
State ;  and  I  never  had  the  time  nor  curiosity  to  investigate 
the  manner  in  which  it  was  done,  having  no  power  vested  in 
me  to  change  it,  if  I  wished  to. 


3fay  10th,  1859. 
John  G.  Nicolay  sworn. 

Q.  Tell  all  you  know  relative  to  the  late  fraud  alleged  to 
have  been  committed  on  the  State,  if  anything. 
—5 


34 

A.  Some  cl.iys,  I  think,  after  the  investigation  by  the  Sen- 
ate Comimttee  liad  begun,  I  was  inquired  of  first  by  Mr. 
Alexainler  Starne,  and,  in  a  few  minutes  afterwards,  by  Gov, 
Matteson,  concerning  a  bhick  trunk  wliich  was  sealed,  and 
which  they  mentioned  as,  perhaps,  containing  some  Scrip  or 
papers  rehiting  to  the  investigation  then  going  on.  It  was,  I 
think,  on  or  about  the  4th  of  February  last,  about  four  o'clock 
in  the  afternoon.  I  got  the  keys  to  some  t)f  the  basement 
rooms  in  the  State  House,  and,  at  Gov,  Matteson's  request, 
went  with  him  to  lind  the  trunk.  Mr.'  Starne,  Mr.  AVm, 
Crane  and  Mr.  Kehoe  went  with  ns.  "We  found  the  trunk  in 
one  of  the  west  rooms  iti  the  basement.  It  was  still  sealed, 
and,  at  Gov.  Matteson's  request,  I  cut  the  tapes  which  formed 
the  seals  and  opened  the  trunk.  It  seemed  to  be  full  of  Can- 
celed Scrip,  and  was  then  taken  up  stairs  and  afterwards  ex- 
amined by  the  Committee  of  the  Senate.  Gov.  Matteson  also 
inquired  concerning  another  box,  which  he  said  resembled  a 
shoe  box.  I  knew  nothing  about  it.  I  helped  him  search  for 
it  in  the  basement,  but  did  not  find  it.  I  was  afterwards  ex- 
amined, under  oath,  by  the  Senate  Committee,  and  gave  them 
substantially  the  above  testimony. 

Thomas  Conner  sworn.  • 

Q.  'Were  you  or  were  yon  not  acting  as  porter  at  the  State 
House  in  the  spring  of  1853  ? 

A.  1  came  into  the  State  House  as  porter  after  McXamara 
died,  about  '48  or  '49,  I  don't  recollect  which.  I  remained 
there  during  Gov.  Matteson's  time. 

Jesse  K.  Dubois  recalled. 

Q.  By  the  Foreman.  Have  you  in  your  possession,  as 
Auditor,  bonds  numbered  900  to  992  and  993,  inclusive  ? 

A.  I  have. 

Q.  Who  placed  them  there,  and  for  whose  benefit,  if  you 
know? 

A.  Bonds  ]^o.  900  to  900,  inclusive,  were  deposited  March 
6th,  1857,  by  Lotus  Niles,  Attorney  of  State  Bank  of  Illinois 


35 

at  Shawn eetown  ;  bonds  No.  961  to  971,  inclusive,  deposited 
in  same  Bank,  March  24tb,  1857,  by  same  person;  bonds  No. 
973  to  993,  deposited  by  E.  Moore,  Attorney,  26th  March, 
1857,  in  same  Bank,  and  circuhiting  notes  were  issued  npon 
the  above  bonds,  which  notes  inured  to  the  benetit  of  the 
owners  of  the  State  Bank  of  Illinois,  Shawneetown,  of  which 
I  always  understood  Gov,  Matteson  to  be  the  principal. 

Q.  By  Mr.  George  Power.  Are  there  any  other  stock- 
holders in  that  Bank  ? 

A.  I  understand,  from  our  record,  that  there  are  other 
stockholders — other  than  Gov.  Matteson. 

Q.  By  the  Foreman.  lias  Joel  A,  Matteson,  at  any  time 
since  the  funding  of  the  bonds  above  described,  in  executing 
any  instrument  of  writing  or  otherwise,  acknowledged  that  he 
owned  the  bonds  described  by  numbers  in  your  answers 
above  ? 

A.  I  do  not  now  recollect  of  having  ever  seen  any  other 
instrument  in  writing  from  Gov.  Matteson  concerning  the 
above  bonds  other  than  the  mortgages  executed  by  him  and 
wife.  We  have  frequently  talked  about  the  bonds,  and  I 
always  understood  from  him  that  the  bonds  were  his,  and  were 
placed  in  the  State  Bank  to  secure  its  circulation  in  part. 

Q.  Have  you  in  your  possession  interest  bonds  numbered 
from  37  to  G9,  inclusive ;  and,  also,  Nos.  36  and  70  ?  If  so, 
please  state  who  exercises  ownership  over  them. 

A.  The  bonds  named  in  the  above  question  are  now  owned 
by  the  State  of  Illinois,  and  no  one  has  a  right  to  exercise 
ownership  over  them,  they  having  been  redeemed  and  can- 
celed. 

Q.  From  whom  were  the  interest  bonds,  numbered  from 
37  to  69,  inclusive,  purchased  ;  and,  also,  bonds  No.  36  and 
70? 

A.  These  bonds  were  originallv  in  the  name  of  the 
Auditor,  in  trust  for  the  use  of  the  State  Bank  of  Illinois,  and 
were  by  me  purchased  from  Gov.  Matteson,  by  the  sanction 
of  Gov.  Bisseil,  at  97  cents  to  the  dollar,  I  think  in  or  about 


36 

the  middle  or  last  of  November,  1858 — it  may  possibly  have 
been  in  December — and  were  drawn  from  the  Bank  by  Lotus 
Niles,  Attorney,  for  the  warrant  for  the  money. 

Q.  Can  you  tell  the  jury  anything  about  interest  bonds 
numbered  from  162  to  160,  inclusive,  and  interest  bond  Is'o. 
170  ?     If  yea,  tell  the  Jury  all  you  know  about  them. 

A.  Interest  bonds  'No.  162  to  169  were  originally  deposited 
in  the  State  Bank  of  Illinois  by  W.  C.  Wood,  Vice-President, 
April  Sth,  1857,  and  sold  to  me,  for  the  use  of  the  people  of 
the  State  ot  Illinois,  by  Gov.  Matteson,  with  the  sanction  of 
Gov.  Bissell,  at  97c  to  the  dollar,  in  Xovember,  1858,  and 
were  withdrawn  by  Lotus  Niles,  Attorney  of  State  Bank, 
November  16th,  1858,  and  warrant  for  the  money  was  receipt- 
ed on  Auditor's  books  by  Lotus  Niles,  Attorney. 


Gkaxd  Jury  Eoom,  May  9t/i,  1859. 
During  the  examination  of  a  witness  yesterday,  the  Sheriff, 
Mr.  Kidd,  handed  the  letter  hereto  attached,  addressed  to  J. 
B.  White,  to  the  Foreman,  and  said  he  was  directed  by  Mr. 
White  to  lay  it  before  the  Jury.  The  letter  was  then  read  by 
the  Foreman  at  the  req^uest  of  the  Jury: 

COPY. 

Springfield,  III.,  May  2,  1859. 

Dear  Sir  : — As  the  investigation  in  relation  to  the  funding  of  Canal  Checks  has 
been  transferred  from  the  Committee  of  the  State  Senate  to  the  Grand  Jury  of  San- 
gamon county,  and  as  the  object  of  such  investigation,  if  entered  upon,  should  be  to 
ascertain  the  whole  truth,  we  would  suggest  to  the  Grand  Jury,  through  you,  the 
names  of  the  following  witnesses,  who  were  examined  before  the  Committee,  bnt 
whose  names  are  omitted  in  the  published  letter  of  Messrs.  Dubois,  Hatch  and  Miller, 
Tiz  :  L.  P.  Sanger,  B.  C.  Cook,  Isaac  B.  Curran,  Asa  H.  Moore,  William  Smith,  Reu- 
ben L.  Anderson,  N.  H.  Ridgley,  R.  E.  Goodell,  John  Neibitt,  Lotus  Nilcs.  Also^ 
Wm.  II.  Bissell,  whose  letter  (though  himself  not  examined)  was  read  before  said 
Committee. 

Also,  the  names  of  the  following  new  witnesses,  who  can  make  most  important  dis- 
closures, and  whose  testimony  may  be  conclusive,  viz  :  Augustus  R.  Knapp,  of  Jer- 
seyville;  0.  H.  Pratt,  of  La  Salle.  Very  respectfully,  yours, 

STUART  &  EDWARDS. 
James  B.  White,  Esq. 

P.  S. — In  addition  to  the  foregoing  witnesses  we  would  suggest  the  name  of  Michael 
Heinrickson,  who  resides  in  Lincoln,  Illinois.  STUART  &  EDWARDS' 


37 

Thomas  "W.  Kidd  sworn. 

Q.  Please  tell  the  Jury  where  you  got  the  above  attached 
letter,  and  what  was  your  iuotruction  from  the  person  to  you 
relative  thereto. 

A.  I  went  into  the  Court  House  on  yesterday  afternoon, 
and  it  was  handed  to  me  by  Mr.  J.  B.  White,  the  State's  At- 
torney, with  the  request  that  I  would  hand  it  in  before  the 
Grand  Jury,  and  request  the  letter  read.  [The  envelope 
which  inclosed  the  foregoing  letter  is  marked  "  C,"  and  is  at- 
tached as  a  part  of  the  evidence.  It  is  addressed  as  follows  : 
"  J.  B.  White,  Esq.,  Fresejit:'] 

J.  B.  White  sworn. 

Q.  Are  you  the  Prosecuting  Attorney  of  this  Judicial  Dis- 
trict? If  yea,  please  examine  the  letter  above  attached, 
marked  "  B,"  and  tell  the  Jury  all  you  know  about  it ;  also, 
whether  you  read  the  letter  before  you  sent  it  to  the  Grand 
Jury,  if  you  did  so  send  it. 

A.  I  am  State's  Attorney  for  the  18th  Judicial  Circuit, 
composed  of  the  county  of  Sangamon  and  others.  I  think  I 
did  open  a  letter  on  yesterday,  but  did  not  read  it.  I  merely 
glanced  at  tliat  letter.  I  do  not  know  whether  the  letter 
marked  "  B  "  is  the  letter  or  not.  Enveloj^  "  C  "  is  the  envelop 
in  which  the  letter  I  handed  T.  W.  S.  Kidd  was  handed  to 
me.  The  envelop  was  handed  me  unsealed,  and  I  handed  it 
to  said  Kidd  (who  is  the  officer  waiting  upon  the  Grand  Jury) 
unsealed,  with  a  request  for  him  to  lay  the  same  before  the 
Grand  Jury.  The  letter  I  handed  to  Kidd  was,  as  I  recollect, 
handed  me  by  B.  S.  Edwards,  Esq.,  who  requested  me  to  read 
it  and  give  it  to  the  Grand  Jury. 

John  T.  Stuart  sworn. 

Q.  Are  you  one  of  the  firm  or  partners  of  Stuart  &  Ed- 
wards? If  so,  are  you  practicing  law  as  Attorneys  in  Sanga- 
mon Circuit  Court  ? 

A.  I  am.     I  am  practicing  law  in  Sangamon  Circuit  Court. 


38 


Q.  Please  examine  the  letter  attached  on  the  preceding;  pao:e 
marked  "13,"  and  tell  the  Jury  whose  hand  writing  it  is  in, 
and  if  it  was  written  by  either  of  the  partners.  If  so,  which  ? 
Also,  had  it  your  sanction  ? 

A.  The  letter  is  in  the  hand  writing  of  George  Car[)enter, 
Clerk  of  our  ollice.  The  letter  in  question  was  planned  and 
written  by  Stuart  &  Edwards,  and  copied  at  our  request.  It 
had  my  sanction,  and  I  am  responsible  for  it  in  every  manner, 
and  I  handed  it  to  the  Prosecuting  Attorney,  and  I  am  ready 
and  desire  to  assign  my  reasons  for  writing  it. 

Q.  Are  you,  or  is  the  firm  of  Stuart  &  Edwards,  the  Attor- 
neys of  Joel  A.  Matteson  ? 

A.  We  are. 

Maij  lOM,  1859. 

The  testimony  was  here  closed,  when  the  Jury  instructed 
the  Foreman  to  put  the  vote. 

AVe,  of  the  Jury,  agree  to  vote  on  the  above  testimony, 
whether  we  will  find  a  true  bill  against  Joel  A.  Matteson  for 
larceny  : 

William  Butler A  true  bill,    James  Maxcy Xot  a  true  hill. 


on  the  above  testimony. 

C.  Sami)S(in, Not  a  true  bill. 

William  Vermillion A  true  bill. 

Cyrus  W.  ^'anderen A  true  bill. 

William  A.  Lockridge A  true  bill. 

Andrew  Kaueh A  true  bill. 

Armstcad  M.Sims A  true  liill. 

M'illiam  Patterson A  true  bill. 

Harrison  Baker A  true  bill. 

Joseph  MeDaniel A  true  bill. 

Edward  Perkins Not  a  true  bill. 


Geo.  Power Not  a  true  bill. 

A.  D.  JMcGraw Not  a  true  bill. 

Joel   Ballard Not  a  true  bill. 

Jesse  Ruble A  true  bill. 

W.  D.  Meggs Not  a  true  bill. 

Thos.  A.   Kerlin A  true  bill. 

M'm.  P.  Grafton Not  a  true  bill. 

John  W.  Priest Not  a  true  bill. 

Washington  E.  Moore Not  a  true  bill. 

Samuel  Clark A  true  bill. 

Samuel  11.  Joues A  true  bill. 


Decided  a  true  bill ;  13  for,  10  against. 


3Iay  nth,  1859. 

Mr.  Wm.  A.  Lockridge  moved  to  reconsider  the  vote  taken 
on  yesterday,  to-wit :  the  finding  of  a  bill  against  Ex-Gov. 
Matteson. 

Motion  seconded  by  Mr.  Priest. 

The  vote  was  then  put  by  the  Foreman  calling  the  names 
of  Jurors : 


E  11  II  A  T  U  M  . 
The  vote  takou  May  lOlh,  should  reaU— 


AVm 


t^anipsi 
.  Vcrnii 


llion, 


\  true  bill, 
.Not  a  true  bill. 


Th 


0  "not    wiis  in'f 


idcntally  trau.«po.sefl  by  the  oonipcsilor. 


39 


Geo.  Power , Aye. 

A.  D.  McGraw Aye. 

Joel  Ballard Ayo. 

.Tussc  I'luble Nay. 

W.  D.  MegKs Aye. 

Thomas  Kerlin Nay. 

Wra.  P.  Cnifton Ayo. 

J<ilin  W.  Priest Ayo. 

Washington  E.  Moore Aye. 

Samuel  Clark Aye. 

Samuel  II.  Jones Nay. 


William  Butler Nay. 

Council  Samp  on Nay. 

William  Verm  ill  iou Aye. 

C.  W.  Vanderen Aye. 

AVilliam  A.  Luckridj^e Aye. 

Andrew  Rauch Aye. 

Armsteail  Sims Nay. 

William    Patterson Nay. 

Harrison  Baker Nay. 

Jo.n-ph  McDaniel Nay. 

Edward  Perkins Aye. 

James  ftla.xcy Aye. 

Ayes  14,  nays  9.     The  Jury  resolved  to  reconsider. 

The  vote  was  then  put  by  the  Foreman :  Shall  the  main 
question  on  finding  a  true  bill  be  now  put  ?  and  decided  in 
the  affirmative. 

The  Foreman  then  stated  :  The  question  now  is,  Shall  we 
find  a  true  bill  against  Joel  A.  Matteson  on  the  foregoing  tes- 
timony ? 

V/m.  Butler A  true  bill. 

Council  Sampson A  true  bill. 

William  Vermillion Not  a  true  1^11. 

Cyrus  W.  Vanderen A  true  bill. 

'\\'illiam  A.  LockriJge A  true  bill. 

Andrew  Ilauch A  true  bill. 

Armstead  M.  Sims A  true  bill. 

William  Patterson A  true  bill. 

Harrison  Baker A  true  bill. 

Jo.«eph  McDaniel A  true  bill. 

Edward  Perkins Not  a  true  bill. 

James  Maxcy Not  a  true  bill. 

For  a  true  bill,  12;  against,  11. 

At  five  o'clock,  Mr.  TTm.  A.  Lockridge  moved  that  the 
Jury  again  reconsider  the  vote  taken  this  forenoon  on  finding 
a  true  bill  against  Joel  A.  Matteson  for  larceny,  on  the  fore- 
going evidence.  Mr.  Lockridge  explains  that  his  reason  is, 
that  one  of  the  Jurymen  wishes  to  change  his  vote,  and  has 
made  it  public  in  the  Jurv  Room. 


Geo.  Power Not  a  true  bill. 

A.  D.  McGraw Not  a  true  bill. 

Joel  Ballard Not  a  true  bill. 

Jesse  lluble A  true  bill. 

William  D.  Meggs Not  a  true  bill. 

Thomas  Kerlin A  true  bill. 

William  P.  Crafton Not  a  true  bill. 

John  W.  Priest Not  a  true  bill. 

Washington  E.  Moore  Not  a  true  bill. 

Samuel  Clark Not  a  true  bill. 

Samuel  H.  Jones A  true  bill. 


William  Butler Nay. 

Council  Sampson Nay. 

William  Vermillion Aye. 

Cyrus  W.  Vanderen Aye. 

AVilliam  A.  Lockridge Aye. 

Andrew  Rauch Aye. 

Armstead  Sims Nay. 

William  Patterson  Naj'. 

Harrison  Baker Nay. 

J'iseph  McDaniel Nay. 

Edward  Perkins Aye. 

James  Maxcy Ayo. 


Geo.  Power Ayo. 

A.  D.  Mcdrraw Aye. 

Joel  Ballard Aye. 

Jesse  Ruble Nay. 

Wm.  D.  Mcgga Aye. 

Thomas  Kerlin Nay. 

Wm.  P.  Crafton Aye. 

John  W.  Priest Ayo. 

AVashington  E.  Moore Aye. 

Samuel  Clark Aye. 

Samuel  H.  Jones Nay. 


For  reconsidering,  14  ;  against,  9. 


40 


The  motion  was  then  made,  by  James  Maxcy,  for  a  final 
vote,  whether  the  Jury  will  find  a  true  bill  against  Joel  A. 
Matteson  for  larceny,  on  the  foregoing  evidence.  The  call 
was  then  proceeded  with,  as  follows  : 


William  Butler A 

Council  Sampson A 

Willi.am  A'crniillion Not  a 

CjTus  W.  Van  Doren A 

AVilliam  A.  Lockridgc A 

Andrew  Iluuch Not  a 

Ariustcad  M.  Sims A 

William  Patterson A 

Harrison  Baker A 

Joseph  S.  McDaniel ..A 

Edward  Perkins Not  a 

James  Maxcy Not  a 

For  a  true  bill,  11 ;  against,  12. 

Mr.  Wm.  Butler  then  moved  that  the  entire  proceedings 
in  this  case  be  pubhshed,  after  the  adjournment  of  the  Grand 
Jury.  Upon  this  motion  Mr.  Ci'afton  called  the  ayes  and 
noes: 


true  bill. 

true  bill. 

true  bill. 

true  bill. 

true  bill. 

true  bill. 

true  bill. 

true  bill. 

true  bill. 

true  bill. 

true  bill. 

true  bill. 

George  Power Not  a  true  bill. 

A.  D.  .McOraw Not  a  true  bill. 

.Joel  Ballard Not  a  true  bill. 

.Jesse  Ruble A  true  bill. 

W.  D.  iMeggs Not  a  true  bill. 

Thomas  A.  Kerlin A  true  bill. 

\\m.  P.  Crafton Not  a  true  bill. 

John  W.  Priest Not  a  true  ))ill. 

Washington  E.  ^looro Not  a  true  bill. 

Samuel  Clark Not  a  true  bill. 

Samuel  11.  Jones A  true  bill. 


William  Butler Aye. 

Council  Sampson Aye. 

Wm.  Vermillion  (believing  it  not  ac- 
cording to  law) No. 

Cyrus  W.  Van  Deren Aye. 

William  A.  Lockridge Aye. 

Andrew  Bauch Aye. 

Armstead  M.  Sims Aye. 

William  Patterson Aye. 

Harrison  Baker Aye. 

Joseph  S.  McDaniel Aye. 

Edward  Perkins Aye. 

James  Ma.xcy Aye. 


Geo.  Power  (believing  it  not  accord- 
ing to  law) No. 

A.  D.  Mc(iraw Aye. 

Joel  Ballard Aye. 

Jesse  Ruble Aye. 

W.  D.  Meggs Aye. 

Thomas  Kerlin Aye. 

William  P.  Crafton Aye. 

John  W.  Priest Aye. 

Washington  E.  Moore ...Aye. 

Samuel  Clark Aye. 

Samuel  U.  Jones Aye. 


In  favor  of  publishing,  21";  against,  2. 


Springfield,  May,  1867. 

The  forogoing  evidence,  taken  before  the  Qrsnd  IJury  of  Sangamon  County,  is  correct,  and 
the  original  is  now  in  my  poBaesaion,  subject  to  the  iaapoctioa  of  au;  who  may  dfiiro  it. 

WILUAM  BUTTER. 
Foreman  Grand  Jury. 


N07B  BY  THE  FoRTMATf. — In  explanation  of  the  reason  of  the  repeated  findings  and  recon- 
Bide  ations,  it  is  proper  to  stnte,  thut  th  •  l'ro3>-ciUing  .\ttorney  omitted,  during  Ibe  progress  of 
tiie  in- eHtign'ion,  and  until  after  several  votes  had  he  n  titkou,  to  furnish  the  .Jury  witli  a  bill. 
About  spNeii  o'clock  on  the  PToiiinir  of  th"  11th.  nftur  the  la-;t  vnto  had  been  takcD,  arjil  »hpti  it 
hail  become  generally  known  that  an  indictment  wonld  not  bo  f  mnd,  a  bill  was  presented,  with 
the  request  that  it  nhoiild  \m  "  ignored  ;"  but  uodei'  tht  existing  circuiuttauces  I  deemed  it  my 
duty  to  decline  to  accept  it. 


REVIEW   OF   TESTIMONY 

IN  THE  INVESTIGATION   OF  THE   CANAL  SCRIP  FRAUD,  BY  THE 

FINANCE    COMMITTEE    OF    THE    ILLINOIS  STATE  SENATE 

AND  THE  GRAND  JURY  OF  SANGAMON  COUNTY,  ILL, 


About  the  first  of  February  last,  the  fact  was  brought  to 
the  attention  of  the  officers  of  State  and  of  the  Legislature, 
then  in  session,  that  a  fraud  had  been  perpetrated  upon  the 
State  in  funding  a  certain  class  of  indebtedness  known  as 
Canal  Checks  of  the  issues  of  May  and  August,  1839.  The 
following  resolution  was  immediately  adojDted  in  the  Senate, 
empowering  the  Finance  Committee  of  that  House  to  investi- 
gate the  subject : 

Whereas,  it  is  said  that  a  large  amount,  in  Certificates  of  the  Stock  of  the  State, 
has  heen  issued,  based  upon  counterfeit  or  spurious  Canal  Scrip  ;  therefore, 

Resolved,  That  the  Finance  Committee  be  instructed  to  inquire  fully  into  the  mat- 
ters herein  alleged,  and  report  the  same  to  the  Senate,  and  that  they  have  power  to 
send  for  persons  and  papers. 

After  several  sittings,  during  which  a  large  number  of  wit- 
nesses were  examined — most  of  whom  had  been  public  officers 
under  the  internal  improvement  system  of  the  State — this 
Committee  finally  reported,  under  the  above  resolution,  on 
the  17th  of  February,  a  few  days  before  the  close  of  the  ses- 
sion. The  investigation  was  conducted  openly,  and  opportu- 
nity afforded  by  the  Committee  for  the  introduction  of  testi- 
mony bearing  upon  the  subject,  both  on  the  part  of  the  counsel 
who  appeared  for  the  State,  and  in  behalf  of  Gov.  Matteson 
who  was  present,  personally  and  by  counsel,  during  the  whole 
6-- 


42 

of  the  investigation.  The  Committee  continued  to  hear  all 
evidence  produced,  until  the  counsel  for  the  State,  and  Gov. 
Matteson  and  his  counsel  declined  to  introduce  any  more. 

In  their  report,  so  far  as  it  was  not  general,  and  relates  to 
this  particular  subject,  the  Committee  content  themselves 
simply  with  giving  a  brief  abstract  of  the  evidence  brought 
before  them,  and  proposing  a  plan  for  the  indemnilication  of 
the  State  from  loss  in  consequence  of  this  fraud.  They  fur- 
ther say  that,  "  at  divers  times  there  has  been  paid  to  Gov. 
Matteson,  from  the  State  Treasury,  an  amount  of  money,  for 
principal  and  interest,  to  make,  with  the  bonds  so  issued  to 
him,  the  sum  of  $228,182  66,  paid,  or  promised  to  be  paid,  to 
Gov.  Matteson  on  account  of  the  Canal  Checks  so  presented 
by  him." 

On  the  recommendation  of  the  Finance  Committee,  an  act 
was  passed  authorizing  the  Governor,  Auditor  and  Treasurer 
to  receive  from  Matteson,  within  a  certain  time,  satisfactory 
security  for  the  repayment  of  the  above  amount  to  the  State, 
within  five  years.  The  contemplated  security  was  furnished, 
■vfrithin  the  time  specified,  by  mortgages  upon  real  estate  loca- 
ted in  different  counties  of  the  State,  and  also  by  an  indemni- 
fying bond  entered  into  by  Joel  A.  Matteson,  as  principal,  and 
R.  E.  Goodell,  John  McGinness,  jr.,  and  Charles  Matteson, 
securities. 

On  the  27th  of  April,  with  a  view  to  a  judicial  investigation 
of  a  crime  known  to  have  been  committed  by  some  one,  this 
subject  was  brought  to  the  attention  of  the  Grand  Jury  of 
Sangamon  county,  by  a  joint  letter  from  the  respective  heads 
of  the  State  Departments.  As  shown  by  the  proceedings  of 
the  Grand  Jury,  herewith  published  under  authority  of  a 
vote  of  that  body,  it  was  resolved,  by  an  almost  unanimous 
vote,  to  enter  upon  the  investigation  as  soon  as  the  witnesses 
could  be  in  attendance.  The  investigation  commenced  on  the 
4:th  of  May,  with  the  calling  of  Enoch  Moore,  Secretary  in 
the  Fund  Commissioner's  office,  as  a  witness,  and  was  con- 
tinued for  several  days.     To  examine  the  testimony  adduced 


43 

before  the  Grand  Jury,  and  that  taken  by  the  Finance  Commit- 
tee—which has  also  been  published  since  the  close  of  the  session 
of  the  Legislature — in  fact,  to  present  as  brief  a  resume  as  pos- 
sible of  all  that  has  been  elicited,  in  an  authentic  manner,  in 
reference  to  this  subject,  will  be  the  object  of  this  article. 

INVESTIGATION   BY   THE    FINANCE    COMMITTEE. 

And  first,  in  reference  to  the  revelations  before  the  Finance 
Committee.     The  Committee,  in  their  report,  say : 

In  the  year  1839,  the  proper  officers  of  the  Illinois  and  Michigan  Canal,  to  meet 
their  pecuniary  necessities,  and,  your  Committee  believe,  pursuant  to  their  power,  by 
Jaw  conferred,  issued  $265,237  of  what  were  called  90  day  Checks,  dated  May  1,1839, 
and  due  90  days  after  date ;  and  they  also  issued  $128,317  of  similar  Checks,  dated 
August  1,  1839.  These  Checks  were,  by  them,  put  in  oirculation  for  a  temporary 
purpose,  from  the  Canal  office  at  Lockport,  Illinois,  and  were  in  part  redeemed  at  the 
Branch  of  the  State  Bank  of  Illinois,  at  Chicago,  and  a  part  were  received  for  dueg 
to  the  Canal,  or  otherwise  redeemed  at  the  Canal  office. 

While  preparing  the  amount  8o  issued,  the  officers  who  prepared  and  signed  these 
•Checks,  not  knowing  how  many  they  might  need,  partially  executed  and  filled  up  for 
future  use,  a  large  amount  of  ether  Checks  similar  in  their  character,  but  were  un- 
trimmed,  unregistered,  and  had  not  the  Treasurer's  name  filled  in. 

How  large  an  amount  was  so  partially  executed  and  filled  up,  your  Committee 
have  not  learned,  because  no  register  was  kept  of  it,  there  ,•  nor  indeed  of  the  others, 
until  they  were  actually  issued  by  the  Secretary  for  circulation,  when  he  entered  the 
amount  of  the  difierent  denominations  in  a  book  kept  for  that  purpose,  from  which  ha 
was  able  to  determine  the  amount  in  circulation  at  any  one  time. 

As  these  Checks  were  only  intended  for  temporary  use,  it  appears  from  the  reports 
of  the  Canal  officers  to  the  Legislature,  in  the  year  1840,  that  they  had  redeemed 
and  taken  up  all  of  both  the  May  and  August  issue,  except  $822;  from  similar  re- 
ports made  in  1842-3,  it  appears  that  only  $?23  was  then  in  circulation,  and  from 
various  subsequent  reports  this  amount  was  reduced  to  $316,  which  amount  it  was 
supposed  was  lost  or  destroyed. 

The  witnesses  called  and  examined  by  the  Finance  Com- 
mittee were  William  H.  Brown,  Cashier  of  the  Branch  of  the 
State  Bank  at  Chicago,  from  1835  to  184i;  Ezra  L.  Sherman, 
Teller  in  the  same  from  1836  to  1840 ;  Michael  Kehoe,  Porter  in 
the  Canal  office  at  Chicago,  from  1847  to  1853  ;  Enoch  Moore, 
Secretary  in  the  Fund  Commissioner's  office ;  John  G.  Nicolay; 
Joel  Manning,  Secretary  Board  of  Canal  Commissioners  from 
1836  to  1845  ;  John  A.  McClernand,  Treasurer  Canal  Board 
from  1837  to  1839 ;  Jacob  Fry,  Acting  Commissioner  from  1836 


44 

to  1845,  and  State  Trustee  after  the  dissolution  of  the  Board 
in  1845  to  1847,  and  predecessor  of  Col.  Oakley  ;  Alex.  Starne, 
Secretary  of  State  under  Gov.  Matteson's  administration ; 
Thomas  Conner,  Porter  in  the  State  House  during  the  same 
time ;  B.  C.  Cook,  Senator  from  La  Salle  county ;  Jesse  K. 
Dubois,  Auditor  of  Public  Accounts  ;  Wm.  F.  Thornton,  Pre- 
sident of  Board  of  Canal  Commissioners  from  1839  to  1841 ; 
A.  J.  Galloway,  Clerk  in  the  office  of  J.  B.  Wells,  Canal 
Trustee  after  the  death  of  Col.  Oakley,  from  1849  to  1851  ; 
Hart  L.  Stuart,  Agent  under  Gov.  French  for  the  funding  of 
State  indebtedness  from  1847  to  1850  ;  Josiah  McRoberts, 
Canal  Trustee  from  1853  to  1857,  and  one  or  two  others ; 
and  those  called  by  Gov.  Matteson,  viz  :  L.  P.  Sanger,  I.  B. 
Curran,  A.  II.  Moore,  AVm.  Smith,  R.  E.  Goodell,  Lotus  Niles, 
John  Nesbitt  and  N.  II.  Ridgely. 

To  commence  in  the  order  of  time  after  the  issue  of  the 
May  and  August  Checks  of  1839,  referred  to  in  the  report  of 
the  Finance  Committee  :  It  appears  from  the  concurrent  tes- 
timony of  Messrs.  Brown  and  Sherman,  of  the  Branch  Bank 
at  Chicago,  and  of  Messrs.  Fry  and  Manning,  of  the  Canal 
office,  that  a  part  of  the  Checks  were  redeemed  at  the  Bank 
and  a  part  at  the  Canal  office.  Mr.  Brown,  relying  upon  the 
books  of  the  Bank,  testifies  that  $100  Checks  of  the  May  issue 
to  the  amount  of  $167,000  were  redeemed  at  the  Bank,  in 
1839.  Of  the  August  Checks  he  says  $31,471  were  redeemed 
at  the  Bank.  Nearly  all  the  above  witnesses  agree  in  saying 
that  the  $50  and  $100  Checks  of  both  issues,  redeemed  at  the 
Bank,  were  not  "  canceled"  or  defaced,  while  the  small  ones 
were,  Mr.  Brown  also  says,  that  all  these  amounts  were  re- 
ceived at  or  before  maturity,  and  were  surrendered  on  the 
check  of  the  Treasurer  of  the  Canal  Board.  The  last  of  the 
May  issue  was  surrendered  on  the  16th  of  September,  1839, 
and  Mr.  Brown  thinks  there  were  none  redeemed  by  the 
Bank  in  1840,  as  the  books  do  not  show  it.  A  report  of  the 
Canal  Commissioners,  bearing  date  December  10th,  1839,  ad- 
duced in  evidence,  states  that  all  the  May  and  August  issues 


45 

had  then  been  withdrawn  from  circulation,  except  $4,039  of 
the  former,  and  $2,388  of  the  latter. 

Messrs.  Fry  and  Manning  both  state  that  nearly  a  year 
after  the  date  of  the  above-mentioned  report,  viz :  early  in 
December,  1840,  all  the  Checks  then  in  the  office  of  the  May 
and  August  issues,  1839 — both  those  redeemed  at  the  Canal 
office  and  those  redeemed  at  the  bank — both  canceled  and 
uncanceled — were  carefully  counted  by  them  and  Mr.  McFar- 
lane,  Mr.  Manning's  clerk,  and,  together  with  the  unfinished 
Checks  of  the  August  issue,  packed  in  a  box  prepared  for  the 
purpose.  This  box  was  then  sealed  with  the  seal  of  the  Canal 
office,  taken  by  Mr.  Manning  to  Chicago,  and  deposited  in 
the  Branch  Bank  of  the  State  of  Illinois.  Mr.  Manning  at 
first  was  not  clear  whether  more  than  one  box  was  taken  up 
at  that  time  ;  but  the  receipt  of  Mr.  Brown,  the  Cashier,  was 
produced  in  evidence  stating  that  it  was  "  one  large  box,  said 
to  contain  Canal  Scrip."  The  date  of  this  receipt  is  Decem- 
ber 5th,  1840. 

In  reference  to  the  contents  of  this  box,  Mr.  Fry  testified 
that  it  "  contained  all  [of  the  May  and  August  Checks]  that 
were  in  the  office  at  the  time."  Mr.  Manning  testified  that, 
when  the  box  was  packed,  the  Checks  of  the  May  and  August 
issues  which  had  been  redeemed  ^^were  all  iJieri'' — that  none 
were  missing,  except  a  few  of  the  smaller  denominations  of 
the  May  issue,  and  two  or  three  of  the  $50  and  $100  Checks 
of  the  August  issue,  which  were  still  in  circulation.  [  There 
was  another  box,  similar  to  a  candle  box,  which  Mr.  Manning 
says  he  afterwards  packed  at  the  Bank  with  small  Scrip,  and 
which  he  says  contained  about  $25,000.  This,  however,  plays 
no  important  part  in  this  investigation.  We  mention  it  now, 
only  because  it  will  appear  in  another  connection  hereafter.] 

A  report  of  Mr.  Fry,  Acting  Commissioner,  of  the  date  of 
December  21st,  1840,  alluded  to  in  the  foregoing  quotation 
from  the  report  of  the  Finance  Committee,  says  that,  at  that 
date,  there  remained  unredeemed  and  in  circulation  of  the 
May  Checks,  $722,  being  all  of  the  denominations  of  $10  and 


46 

less,  and  one  $100  Check  of  the  August  issue.  Mr.  Fry  also 
stated  that  the  amount  packed  in  the  box  corresponded  with 
the  report — that  "  it  was  all  2)(icJ^<^d  in  that  box,  except  the 
amount  reported  there.'*''* 

It  now  hecomes  our  duty  to  trace  this  box  as  closely  as  pos- 
sible; as  it  was,  undeniably,  by  means  of  the  uncanceled  and 
unfinished  Checks  deposited  therein  that  this  enormous  fraud 
•was  perpetrated. 

Mr.  Brown  testifies  to  the  receipt  of  the  above  described  box 
in  1840 ;  says  it  was  placed  in  the  vault  of  the  Bank  at  Chicago ; 
that  he  occasionally  saw  it  there,  and  "it  a])parently  remained 
intact;"  that  he  had  no  doubt  it  went  away  in  the  same  con- 
dition in  which  it  came;  supposes  he  delivered  it  to  Kehoe. 

Michael  Kehoe,  porter  in  the  Canal  Office  at  Chicago,  testi- 
fies that,  "in  1848,  Col.  Oakley  (then  State  Trustee)  sent  him 
down,  with  an  order,  to  Mr.  Brown's,  at  the  old  Bank  at  Chi- 
cago, for  two  boxes  and  two  packages."     One  of  these  boxes 
he  describes  as  a  candle  hox.,  and  the  other  answers  to  the 
description  of  the  box  containing  the  May  and  August  Checks 
deposited  by  Mr.  Manning,  in  1840.     lie  says  he  brought  it 
to  the  Canal  Ofiice,  and  it  remained  there  until  Mr.  McRob. 
erts  came  into  office,  in  1853.     He  never  saw  what  was  in  the 
boxes — believes  Mr.  Bradford,  a  clerk  in  the  office,  opened 
the  candle  box,_6aw  it  contained  "old  scrip,"  and  covered  it 
down.     Kehoe  also  testified  that,  in  1853,  after  Mr.  McRoberts 
came  into  office,  he  assisted  the  latter  to  pack  up  the  contents 
of  the  two  boxes  and  some  packages  in  the  safe  in  the  Canal 
Office ;  that  they  were  packed  part  in  a  trunk  and  part  in  a 
shoe  box;  that  the  trunk  and  box  w^ere  addressed  to  "Hon. 
Joel  A.  Matteson,  Springfield,  Illinois;"  that  he  accompanied 
them  to  the  cars,  on  the  following  morning,  and  delivered 

*  A  slight  discrepancy  occurs  in  the  testimony  here.  The  rcceij)t  of  Mr.  Brown  to 
Mr.  Manning,  for  the  box  containing  the  May  and  Angust  Chocks,  in  the  jiulilishcd 
report,  bears  date  "  December  5th,  18  lU  ;"  whereas,  Mr.  Fry  fiays  that  the  boj  was 
jiacked  lictwccn  the  21st  and  the  2jth— evidently  belicvin;^  tiiat  tiie  box  was  received 
by  iMr.  Urown  on  the  2jth.  We  are  inclined  to  believe  tliat  there  is  an  error  in  the 
copy  of  the  reeeijit,  and  that  Mr.  Fry's  uudoratauding  was  correct — though  tho 
poiut  is  UDiniportant. 


4r 

them  to  Mr.  McRoberts,  who  was  going  to  Joliet.  Kehoe 
identified  the  trunk  wliich  was  found  in  the  State  House,  and 
was  produced  before  the  Committee  during  the  investigation^ 
as  the  same  which  had  been  packed  by  himself  and  McRob^ 
erts  in  the  Canal  Office ;  but  the  shoe  box  was  not  found. 
The  trunk  was  examined  and  found  to  contain  nearly  twa 
millions  and  a  half  of  indebtedness  of  different  kinds,  among 
which  were  $50  Checks  to  the  amount  of  $21,800,  and  $100 
Checks  to  the  amount  of  $11,800,  of  the  May  issue,  1839,  and 
$26,400  in  $100  Checks,  of  the  August  issue,  1839.  All  the 
above  pcijters  were  cwneeled.  The  Investigating  Committee,  in 
their  report,  speaking  of  this  trunk,  say,  '•'' there  were  ujpon  it 
some  appearances  of  having  heen  sealed  twice,  as  if  opeiied  and 
sealed  againP 

Mr.  Mclloberts,  Canal  Trustee  from  1853  to  1857,  (having' 
been  appointed  by  Gov.  Matteson,)  and  successor  to  J.  13. 
Wells,  corroborated  the  testimony  of  Kehoe  with  reference  to 
the  packing  of  the  trunk  and  shoe  box  in  the  Canal  Office, 
their  being  addressed  to  "  J.  A.  Matteson,  Springfield,  111.," 
and  their  delivery  to  Matteson  at  the  Depot  of  the  Rock  Island 
Railroad.  He  further  stated  that  he  took  possession  of  the 
office  on  Saturday,  March  22d,  1853 ;  that  the  packing  was 
done  on  the  next  (Sunday)  morning  ;  that  the  lid  of  the  smal- 
ler or  candle  box  was  loose  ;  that  he  examined  some  of  the 
packages  in  that  box,  and  found  they  did  not  hold  out ;  those 
he  saw  were  canceled;  did  not  remember  seeing  any  $50  or 
$100  ninety  day  Checks;  that  he  tried  to  put  the  large  sealed 
box  in  the  trunk,  and  afterwards  in  the  shoe  box,  and  neither 
would  receive  it ;  that  Kehoe  then  broke  open  the  sealed  box, 
and  he  (McRoberts)  took  out  its  contents  and  packed  them 
in  the  shoe  box  or  the  trunk,  or  in  both ;  and  that  the  contents 
of  the  smaller  box  and  the  other  papers  in  the  safe  were  pack- 
ed in  the  same  manner. 

Mr.  McRoberts  also  testified  that  the  contents  of  the  sealed 
box  were  in  large  packages,  bound  with  tape  and  pasteboard ; 
he  did  not  open  the  packages,  but  simply  laid  them  in  the 


48 

box  ;  they  seemed  to  be  "  undisturbed,"  and  in  the  same  con- 
dition in  which  they  were  first  packed  ;  did  not  examine  them 
60  as  to  know  what  they  were;  and  that  the  description  by 
Messrs.  Fry  and  Manning  of  the  box  which  they  packed  with 
May  and  August  Checks  of  1839,  at  the  Canal  Office  at  Lock- 
port,  corresponded  with  that  of  the  sealed  box  which  he  re- 
ceived from  Gov.  "Wells  and  broke  open.  Mr.  Brown,  on 
being  recalled,  stated  that  he  received  such  a  box  as  that  de- 
scribed by  Messrs.  Fry  and  Manning. 

McRoberts,  having  received  the  box  and  trunk  from  Kehoe 
at  the  Rock  Island  Railroad  Depot,  went  with  them  to  Joliet. 
There  he  met  with  Gov.  Matteson.  The  next  day,  or  the  day 
following  that,  he  and  Gov.  Matteson  started  to  LaSalle  to- 
gether, and  brought  the  box  and  trunk  with  them.  Gov. 
Matteson  was  on  his  way  to  Springfield,  and  McRoberts 
delivered  the  box  and  trunk  over  to  Matteson  at  La  Salle,  and 
they  were  put  into  the  baggage  car,  to  be  taken  across  the 
river  and  shipped  on  the  Illinois  Central  Railroad.  That 
ended  McRoberts'  connection  with  the  trunk  and  box. 

To  this  point,  viz :  the  delivery  of  the  trunk  and  box  into 
the  hands  of  Matteson,  the  chain  of  evidence  is  complete — 
each  link  is  unbroken — the  conclusion  inevitable  and  irresisti- 
ble. Messrs.  Brown,  Sherman,  Fry  and  Manning  agree  as  to 
the  manner  of  issue  and  redemption  of  the  May  and  August 
Checks,  1839 ;  that  by  far  the  largest  proportion  of  the  $50 
and  §100  Checks  of  these  issues  were  redeemed  at  the  Bank ; 
that  they  were  counted  as  cash  and  not  ^'"canceled f  that  they 
were  returned  to  the  Canal  Office  in  the  same  condition. 
Messrs.  Fry  and  Manning  testify  and  their  official  reports 
prove  that  in  December,  18^0,  the  whole  of  these  issues  had 
been  retired  from  circulation,  except  a  few  hundred  dollars 
of  the  first  and  a  single  hundred  dollar  Check  of  the  last :  they 
agree  that  the  whole  of  these  Checks  about  the  same  time,  in 
the  condition  in  which  they  came  from  the  Bank,  were  packed 
in  a  box  at  the  Canal  Office,  sealed  with  the  seal  of  the  office, 
and  by  Mr.  Manning  taken  to  Chicago  and  deposited  in  the 


49 

Branch  Bank  at  that  phace.  Mr.  Brown  testifies  that  he  re- 
ceived this  box;  that  it  remained  in  the  Bank  until  1848;  that 
in  that  time  he  believes  it  to  have  been  unbroken;  that  in 
1848  he  delivered  it  into  the  hands  of  Kehoe,  to  be  taken  to 
the  Canal  Office;  that  when  he  delivered  it,  it  was  in  the 
same  condition  in  which  he  received  it.  Kehoe  testifiies  to 
having  received  the  box  from  Mr,  Brown  at  the  Bank ;  that 
(with  other  matter)  he  removed  it  to  the  Canal  Office ;  that  it 
remained  in  the  Canal  Office,  apparently  in  the  condition  in 
which  it  was  received,  until  Mr.  McRoberts  came  into  office ; 
that  it  was  then  broken  open  and  its  contents  packed  into  the 
trunk  or  shoe-box,  or  both,  and  taken  to  the  Rock  Island  Rail- 
road Depot  and  placed  in  charge  of  Mr.  McRoberts.*  Mc- 
Roberts states  that  a  box  answering  to  the  one  described  by- 
Messrs.  Fry  and  Manning,  and  the  same  spoken  of  by  Kehoe 
as  having  been  received  from  the  Bank,  was  in  the  Canal 
Office  at  the  time  he  came  into  it ;  that  it  was  sealed  and  ap- 
parently unbroken  ;  that  he  and  Kehoe  broke  it  open  ;  that  its 
contents  appeared  to  have  been  undisturbed ;  that  they  trans- 
ferred them  to  the  shoe-box  or  trunk,  or  both  ;  that  they  were 
addressed  to  "J.  A.  Matteson,  Springfield,  111.;"  that  he  (Mc- 
Roberts) received  the  same  from  Kehoe  at  the  Rock  Island 
Railroad  Depot,  at  Chicago;  that  he  took  them  with  him  to 
Joliet,  and  delivered  them  into  the  hands  of  Matteson  at  La 
Salle. 

Although  Gov.  Matteson  was  present,  with  counsel,  during 
the  whole  of  the  investigation,  and  each  witness  was  subjected 
to  a  most  rigid  cross-examination,  there  was  nothing  elicited 
in  contradiction  of  these  facts. 

So  far,  the  history  of  the  sealed  box  containing  the  uncan- 
celed Canal  Checks  of  May  and  August,  1839,  and  the  course 
taken  by  its  contents,  has  been  traced  clearly,  and  it  is  shown, 
beyond  the  shadow  of  a  doubt,  that  they  came  into  the  hands 
of  Matteson. 

*  A.  J.  Galloway,  a  Clerk  in  Gov.  Wells'  office  from  1S>^9  to  1851,  swears  that  two 
boxes  were  in  the  office,  at  that  time,  sealed  j  and  were  bj  him  delivered  to  Gov. 
WoUs,  sealed,  when  ho  left  the  olBce. 

—7 


50 

Now,  in  rcijanl  to  the  indebtedness  funded  by  Gov.  Matte- 
son,  the  Finance  Committee,  in  their  report,  say  : 

"The  greater  part  of  the  Checks  so  presented  by  hitn  are  recognized  by  General 
Thornton,  General  Fry  and  Mr.  Manning  as  the  genuine  fifty  and  one  hundred  dol- 
lar Checks  of  Miiy  Ist  and  August  1st,  IS.'5'J,  by  them  is-sued  and  redeemed  as  herein- 
before stated,  and  as  part  of  the  redeemed  Checks  packed  ))y  Mr.  Manning  and  Gen. 
Pry  in  the  box  deposited  in  the  Bank  at  Chicago,  in  the  year  1840. 

"There  is  also  found  among  the  Checks,  funded  by  Gov.  Matteson,  two  packages 
of  the  Checks  dated  August  1st,  1839,  amounting  to  $10,500,  which  are  fresh  in  ap- 
pearance, have  the  edges  untrimined,  but  fully  signed  by  the  Commissioner  and  Sec- 
rctarj-  of  the  Canal  Commissioners,  indorsed  by  the  Treasurer  of  the  Board,  but  want- 
ing tlie  name  of  the  Treasurer  filled  in  upon  their  face,  and  lying  upon  each  other  in 
consecutive  numbers." 

"About  $  3,000  of  the  Cheeks  funded  by  Gov.  Matteson  appeared  to  be  specially 
indorsed  to  Wm.  II.  Brown,  Cashier,  and  not  re-indorsed  by  him." 

There  was  much  evidence  to  prove  that  the  May  and 
August  Checks  ot  1839  were  not  in  circuUition  after  184:0 
to  1812.  Mr.  Brown  thinks  that  no  considerable  amount  was 
in  circulation  in  1810.  Mr.  Sherman  might  have  seen  some 
of  it,  but  '•  no  amount,  however."  Enoch  Moore  states  that 
none  of  them  were  funded  during  Gov.  French's  administra- 
tion— that  two  Checks  of  the  May  issue,  one  $50  and  one  $100, 
were  funded  in  the  name  of  "  John  Johnson,"  April,  1853, 
that  three  $1100  Checks  of  the  same  issue  were  funded  for  Mr.' 
Ridgely  in  October,  1851,  and  that  two  Checks,  of  SI 00  each, 
were  funded  for  Charles  Thompson,  in  July,  1856 :  but  all 
these  have  since  been  discovered  to  be  counterfeit.  Several 
other  witnesses  testify  that  some  two  or  three  thousand  dol- 
lars of  counterteit  Scrip  were  put  in  circulation  in  1839,  but 
such  counterfeits  were  at  once  detected  by  the  Canal  officers, 
and  some  of  the  parties  punished  for  forgery.  These, 
plainly  then,  could  not  have  come  from  the  box  of  geiv- 
nine  Checks  deposited  in  the  Branch  Bank  at  Chicago,  and 
afterwards  reboxed  by  McRoberts  and  placed  in  the  hands  of 
Gov.  Matteson.  Mr.  Dubois  testifes  that  he  never  saw  any  of 
any  kind  of  ninety  day  Canal  Checks,  either  counterfeit  or 
genuine,  until  he  saw  the  counterfeit  piece  shown  to  him  by 
Gen.  Fry.  Mr.  Manning  says  it  M'as  known  in  the  Canal 
office  that  the  ninety  day  Checks  issued  by  the  Canal  officers 


51 

Lad  mostly  been  retired.  Mr.  Galloway  says  such  ninety  day 
checks  "  had  mostly  disappeared  before  his  advent,  in  1841." 
Gen.  Thornton  never  saw  any  of  those  issues  hi  circulation 
after  he  left  the  Canal  office  in  1841. 

Ilart  L.  Stuart,  a  contractor  on  the  Canal  in  1839,  and 
agent  for  the  State  for  the  purpose  of  funding  State  indebted- 
ness trom  1817  to  1850,  having  been  appointed  by  Gov.  French, 
states  that,  although  it  was  generallj  known  he  was  engaged 
in  funding  State  indebtednes,  and  had  advertised  himself  as 
such  in  New  York  city,  and  probably  funded  from  $400,000 
to  $600,000  of  various  kinds,  yet  he  never  received  more  than 
$150  to  $200  of  the  May  and  August  issues,  1839,  and  those? 
"  all  of  the  small  denominations."  He  thinks  they  did  not 
generally  circulate  "  more  than  six  or  eight  months,  or  a  year 
at  farthest" — "  don't  recollect  seeing  any  of  them  of  any  ac- 
count the  year  after  thev  were  first  circulated."  This,  of  it- 
self,  is  sufficient  to  prove  that  the  Checks  packed  by  Messrs. 
Fry  and  Manning  could  not  again  have  been  put  in  circulation 
up  to  1850 — even  if  it  were  not  known  that  they  were  still 
safe  in  the  box  at  the  Canal  office. 

The  testimony  of  Messrs.  Thornton,  Fry,  Manning  and 
Brown  was  clear,  as  stated  in  the  report  of  the  Finance  Com- 
mittee, in  reference  to  the  identity  of  the  Checks  said  to  have 
been  funded  by  Gov.  Matteson,  with  those  redeemed  by  the 
Bank,  and  afterwards  packed  in  the  Canal  office  in  1840.  The 
testimony  of  Enoch  Moore  was  positive  that  the  whole  of  these 
Checks  had  been  handed  to  him  by  Gov.  Matteson,  to  be  fund- 
ed in  different  names,  at  various  dates,  from  the  9th  of  Jan- 
uary, 1857,  to  the  18th  of  March  of  the  same  year,  and  that  he 
knew  no  other  person  in  the  transaction  besides  Gov.  Matteson. 
He  also  stated  that  he  had  never  seen  a  single  one  of  the  (pre- 
tended or  real)  individuals  in  whose  names  this  indebtedness 
had  been  funded,  (except  William  Smith,  for  whom  $  300  of 
the  lots  had  been  funded,)  and  no  testimony  was  offered  to  prove 
that  any  of  them  had  an  existence. 

B.  C.  Cook  was  introduced  by  Gov.  Matteson  to  prove  that 
he  (M.)  had  bought  State  indebtedness  of  Cook  in  1867.     It 


52 

was  proved,  however,  that  the  indebtedness  sold  by  Mr.  Cook 
was  Internal  Improvement  Bonds  and  Interest  Canal  Scrip  of 
1840.  i\o  7Mr^  of  it  was  of  the  May  and  August  issues,  lb39. 
So  nothing  was  elicited  pertinent  to  the  investigation. 

Messrs.  Sanger,  Curran,  A.  II.  Moore,  Smith,GoodelI,  Niles, 
Nesbitt  and  Ridgely,  were  called  by  Matteson  to  prove  that 
he  was  engaged  largely  in  the  purchase  of  State  indebtedness 
during  the  winter  of  1856-7,  and  that  he  obtained  large  sums 
of  money  from  the  Bank  at  Joliet  and  elsewhere,  to  be  used 
(as  was  understood)  in  the  purchase  of  such  indebtedness. 
Sanger  stated  that  he  had  seen  Matteson  buying  indebtedness 
of  ditferent  parties  whom  he  did  not  know,  at  various  times — 
claimed  to  have  been  "  familiar"  with  Canal  Scrip — thought 
he  bought  some  of  the  May  or  August  Scrip,  1839,  in  New 
York,  three  years  ago — thought  he  sold  it  to  Matteson — was 
not  certain  that  he  did  so — did  not  I'noiv  there  icere  two  issues 
in  1839 — thought  the  Scrip  he  saw  Matteson  buying  was 
ninety  day  Checks,  but  could  not  tell  whether  they  were 
of  the  May  or  August  issue.  Curran  claimed  to  have  seen 
Matteson  buying  ninety  day  Canal  Checks  at  the  St.  Nicholas 
Hotel,  in  Springfield,  in  the  winter  of  1856-Y — was  introduced 
by  Matteson  to  some  of  the  parties  who  sold,  but  could  not 
tell  their  names  nor  where  they  came  from,  or  other  particulars 
— was  not  familiar  with  the  May  and  August  issues,  1839 — 
only  remembered  there  were  $50  and  $100  ninety  day  Checks 
— knew  no  other  facts.  Asa  H.  Moore's  testimony  was  to 
the  same  purport — had  never  noticed  the  denomination 
more  than  once — could  not  identify  the  May  and  August 
Checks  as  the  same  he  saw  Matteson  buying.  Smith  and 
Goodell  swore  to  Matteson's  procuring  a  large  amount  of  money 
from  the  Bank  at  Joliet,  which,  they  understood,  was  to  be 
used  in  purchasing  State  indebtedness. 

So  much  for  the  testimony  before  the  Investigating  Com- 
mittee. We  come  now  to  that  taken  before  the  Grand  Jury 
of  Sangamon  County. 


5^ 


INVESTIGATION   BY  THE    GRAND    JURY. 

The  witnesses  who  appeared  before  the  Grand  Jury  were : 
Enoch  Moore,  Jacob  Fry,  Joel  Manning,  Wm,  II.  Brown, 
Michael  Kehoe,  Josiah  McRoberts  and  John  G.  Nicolaj,  all 
of  whom  were  examined  by  the  Finance  Committee;  also  De- 
puty Sheriff  T.  W.  S.  Kidd,  J.  B.  White  and  John  T.  Stuart. 

The  testimony  elicited  by  the  Grand  Jury  corroborated 
that  brought  before  the  Investigating  Committee,  except  that 
it  was  more  clear  and  direct,  and  less  burdened  with  extrene- 
ous  and  irrelevant  matter.  The  same  facts  were  not  only  con- 
firmed, but  new  ones  elicited. 

Certain  bonds  were  identified  by  numbers  in  the  testimony 
of  Enoch  Moore  as  having  been  issued  on  the  funding  of 
Canal  Checks  of  the  May  and  August  issues,  1839,  Moore 
also  stated  that  the  Checks  were  handed  to  him  by  Gov,  Mat- 
teson  at  different  times — that  the  Checks  were  funded  in  the 
names  of  other  parties,  but  that  the  bonds  issued  on  such  fund- 
ing were  received  by  Gov.  Matteson — that  he  did  not  know 
any  of  the  persons  in  whose  names  the  Checks  were  funded, 
except  Wm.  Smith,  to  w^hom  $300  was  funded  in  January, 
1857.  Mr.  Dubois  swore  that  these  bonds,  identified  by  num- 
bers, or  a  large  proportion,  were  deposited  with  the  Treasurer 
as  security  for  the  circulation  of  certain  Banks  in  which  Mat- 
teson is  interested.  There  was  a  difference  between  Matteson 
and  the  State  ofiicers  in  reference  to  $13,000  funded  in  the 
name  of  John  Kellogg  and  Caleb  Johnson,  during  Matteson's 
administration.  Matteson  claimed  that,  although  he  present- 
ed the  Checks,  yet  he  did  it  as  a  public  officer  for  other  parties, 
and  that  he  received  no  benefit  therefrom,  and  therefore  that 
lie  should  not  be  compelled  to  idemnify  the  State  therefor.  A 
letter  (which  is  published  with  the  evidence)  from  O.  F.  Lowe, 
of  New  York,  to  Enoch  Moore,  states  that  "soon  after  the 
issue  of  the  first  bonds  for  the  ninety  day  Scrip,  I  [he]  sold 
for  Gov.  Matteso'ni)''  the  tdentical  bonds  received  therefoi*,  viz  : 
bonds  numbered  886  to  899,  inclusive — and  that  they  are  now 
held  by  some  Banks  in  Illinois  or  Wisconsin.     The  $300 


64: 

funded  to  tlie  name  of  "Win,  Smith  was  included  in  tliesc  bonds 
— being  part  of  bond  809. 

Gen.  Fry's  testimony  was  substantially  the  same  as  that  he 
gave  before  the  Investigating  Committee.  lie  identified  the 
Checks  produced  before  the  Jury  (which  Mr.  Moore  had 
already  identified  by  numbers  as  those  presented  by  Matteson 
to  be  funded)  as  the  same  Checks  of  May  and  August,  1830,* 
issued  by  the  Board  of  Canal  Commissioners — testified  to  the 
fact  that  they  had  been  ])aid  at  the  Bank  at  Chicago,  or  at  the 
Canal  oftice — that  all,  both  those  redeemed  at  the  Bank  and 
at  the  Canal  office — the  former  in  the  condition  in  which  they 
were  received  from  the  Bank — were  packed  in  a  box  by  him- 
self and  Mr.  Manning,  in  December,  1840,  which  box  was 
afterwards  sealed  and  by  the  latter  deposited  in  the  Branch 
Bank  at  Chicago. 

Mr.  Manning's  testimony  was  to  the  same  purport,  viz  :  as 
to  the  whole  amount  of  the  Checks,  their  character,  the  man- 
ner of  issue  and  redemption,  the  return  of  the  redeemed 
Checks  from  the  Bank  to  the  Canal  office  ;  the  fact  that  all  the 
redeemed  Checks  in  the  office  at  the  time  mentioned  by  Gen. 
Fry,  were  carefully  examined,  counted  and  packed  in  a  box — 
that  this  box,  having  been  sealed,  was  taken  by  him  to  Chica- 
go and  deposited  in  the  Bank — that  at  that  time  there  was 
only  $722  of  those  issues  still  out — that  the  Checks  of  the  de- 
nominations of  $50s  and  $100s  received  from  the  Bank  were 
not  cut  with  a  canceling  hammer,  and  had  been  so  packed,  &c. 
lie  said,  "  most  of  the  Checks  now  before  me,  (meaning  those 
of  the  May  and  August  issues  funded  by  Matteson,)  brought 
in  by  the  Auditor,  are  the  same  that  were  j9a6'/('(?(^  in  the  hoxP 
He  recognized  the  unfinished  Checks  of  the  August  issue  as 
those  which  had  been  packed  in  the  box,  and  thought  they 
could  never  have  been  in  circulation. 


*Mr.  Frj'  states  that  the  amount  of  the  May  Checks  of  1839  prepared,  was  as  fol- 
lows :  Of  the  regular  Checks,  $219,324,  and  of  the  irregular  Checks  $49,735,  making 
in  all  $269,059.  Of  this  amount  he  says  $3,822  were,  for  some  reason,  subsequently 
rejected,  and  never  put  in  circulation,  leaving  $265,237  for  the  amount  actually  put 
in  circulation,  which  agrees  with  the  report  of  the  Senate  Investigating  Committee, 
as  quoted  in  the  preceding  part  of  this  summary. 


65 

Mr,  Manning  also  testified,  that  in  the  spring  of  1841,  he 
went  to  Chicago  for  the  purpose  of  receiving  the  small  at 
sight  Checks  of  $1  00,  $2  50  and  $5  00— that  he  did  so  re. 
ceive  them,  and  having  carefully  counted  them,  put  them  up 
in  packages,  with  the  amounts  marked  on  the  packages,  which 
he  afterwards  deposited  in  a  box  which  he  called  "  box  JSTo. 
2"  (also,  he  says,  by  some  called  the  canclle-hox) — that  a  list 
of  the  packages  in  this  box  was  taken  by  Mr.  Howe,  the  clerk, 
and  one  copy  (he  thinks)  deposited  in  the  box,  and  the  other 
received  by  himself,  which  he  still  has — that  this  box  was 
sealed  up  and  left  in  the  care  of  the  Bank — that  the  Checks 
put  in  it  "  were  all  cut  vnth  the  canceling  hammer,^''  either  by 
Mr.  Howe  or  Mr.  Brown. 

Mr.  Brown  again  testified  to  the  redemption  by  the  Bank  of 
about  $LTO,000  of  the  May  and  August  Checks,  1839,  pre- 
vious to  IGth  September,  1839 — to  the  fact  that  the  larger 
Checks  were  uncanceled,  and  were  so  delivered  to  the  Trea- 
surer of  the  Canal  Board.  He  recognized  many  of  the  Checks 
placed  before  him  as  those  which  must  have  been  redeemed 
by  the  Bank,  as  they  were  specially  indorsed  to  him — stated 
that  he  had  never  put  any  of  them  into  circulation — testified 
to  the  receipt  of  the  box  described  by  Messrs.  Fry  and  Man- 
ning, also  to  the  receipt  of  the  candle-box  packed  at  the  Bank 
by  Manning,  in  1811,  and  to  the  delivery  of  these  two  boxes 
to  some  one  from  the  Canal  office  in  1848  or  1849.  He  fur- 
ther said  :  "  The  boxes,  while  in  my  possession,  were  never 
opened  by  me,  or,  as  I  believe,  by  Mr.  Howe,  my  clerk.  For 
the  last'"^ve  years  I  had  exclusive  possession  of  the  keys  of  the 
vault,  and  it  was  not  opened  by  any  one  but  myself." 

Kehoe  testified,  as  before,  to  receiving  the  abovementioned 
boxes  at  the  Bank  in  1848,  and  their  removal  to  the  Canal 
office,  where  they  remained  until  McRoberts  came  into  office, 
in  1853.  Their  contents  were  then  placed  in  a  trunk  and  shoe- 
box,  as  already  described,  these  were  directed  to  Matteson  at 
Springfield,  taken  by  him  (Kehoe)  to  the  Rock  Island  Rail- 
road and  delivered  to  McRoberts.  Kehoe  says,  "the  candle 
lox  was  shuch  in  one  corner  with  standino;  on  it  at  the  canal 


56 

Scales — the  office  was  so  throng  with  the  people."  lie  also 
eajs,  "  Thomas  Bradford  looked  at  the  corner  of  it,  to  see 
what  was  in  it  one  time" — believes  "  he  said  it  was  canceled 
SeripP  Kelioe  i)lainly  knewthe  larger  box,  containing  the 
May  and  August  Checks,  to  be  still  sealed  and  uninjured. 

McRoberts,  more  clearly  than  before  the  Investigating  Com- 
mittee, testified  to  having  received  from  his  predecessor 
(Gov.  Wells)  in  1853,  among  other  matter,  two  boxes,  one  of 
which  (the  smaller,  or  candle  box)  was  open,  and  the  other, 
which  was  sealed,  and  "  which  had  the  impression  of  the  seal 
of  the  old  Board  of  Commissioners  upon  it" — says  he  ex- 
amined "  the  box  that  was  open,  and  found  that  it  contained 
canceled  ninety  day  Checks — the  contents  of  some  of  the  pack- 
ages "did  not  hold  out" — "from  the  appearance  of  the  box, 
some  of  the  packages  had  been  taken  out."  He  again  recite^ 
the  breaking  open  of  the  sealed  box — says  they  "  found  it  con- 
tained packages  done  up  between  two  pieces  of  pasteboard  cut 
the  size  of  the  box — the  packages  were  laidlinbetvveenthepaste- 
boards — the  pasteboards  were  then  wrapped  with  tape  or  twine 
and  (he  thinks)  sealed  with  sealing  wax."  {_Query  :  If  this  box 
had  ever  been  opened  before — especially  for  a  fraudulent  or  fel- 
onious purpose — is  it  at  all  probable  that  its  contents  would  have 
been  found  so  carefully  packed  and  in  so  good  condition,  as  is 
evident  from  this  description  they  were  ?  Even  if  there  were  no 
direct  testimony  to  prove  that  it  had  never  been  opened  before, 
would  not  this  circumstance  be  conclusive  ?]  They  "cut  the 
tape,  took  out  the  packages  and  put  a  part  in  the  trunk  and  a 
part  in  the  box,  or  the  whole  in  one  or  the  other,"  he  can- 
nut  say  which.  lie  describes  the  packing  of  the  contents  of 
the  smaller  Ijox  and  other  packages  found  in  the  safe,  in  the 
trunk  or  shoe-box,  or  both,  in  the  same  manner,  substantially, 
as  Kelioe — thinks  the  trunk  and  shoe-box  M'ere  sealed,  but  is 
not  certain — says  he  directed  them  to  ''  J.  A.  Matteson,  Spring- 
field,  Ills." — that  he  received  the  same  from  Kehoe  at  the 
Eock  Island  Railroad  Depot  on  the  following  morning — that 
lie  took  them  with  him  to  Joliet,  there  met  with  Matteson, 


57 

went  witli  him  (M.)  to  LaSalle,  and  there  delivered  the  trunk 
and  box  to  Matteson,  to  be  brought  to  Springfield. 

The  investigation  before  the  Finance  Committee  and  that 
before  the  Grand  Jury  then  arrive  at  the  same  result.     The 
trunk  and  hox  jpass  into  the  hands  of  Matteson  at  La  Salle. 
Nothing  further  is  known  of  them  or  their  contents,  until  it  is 
discovered  that  a  fraud  has  been  committed  in  the  funding  of 
a  certain  class  of  indebtedness,  which  all  this  evidence  goes  to 
prove  was  packed  in  them.     Gov.  Matteson  then  suggests  a 
search  for  the  trunk.     It  is  found  in  one  of  the  basement  rooms 
of  the  State  House,  but  it  is  filled  with  a  large  amount  of  in- 
debtedness of  dilferent  varieties,  all  canceled.     He  then  says 
something  about  the  shoe-box,  and  search  is  made  for  it  also, 
but  it  is  not  found.    The  Investigating  Committee,  speaking  of 
the  trunk,  say,  ."  there  loere  iipoji  it  so?ne  apjyearances  of  ham7ig 
heen  sealed  twice,  as  if  opened  and  sealed  again.''''     One  of  two 
conclusions  is  unavoidable — either  all  the  contents  of  the  seal- 
ed box,  containing  the  May  and  August  Checks,  were  put  by 
McKoberts  in  the  missing  shoe-box ;  or  the  trunk  and  box  must 
have  been  broken  open  by  some  one  having  access  to  tliem, 
the  contents  of  both  which  were  unavailable  or  useless,  packed 
in  the  former,  and  the  box,  with  its  available  contents,  spirited 
away.     The  latter  is  the  more  probable  ;  for  if  any  j)ortion  of 
the  uncanceled  Checks  were  deposited  by  McRoberts  in  the 
trunk  and  it  had  never  been  opened  after  it  passed  out  of  Mc- 
Eoberts'  hands  until  it  was  opened  on  the  4th  of  February  last, 
they  ought  to  have  been  there  still— for  the  trunk  was  full  when 
found.     Another  ground  for  this  theory  is  the  fact  that  the 
trunk  contained  a  considerable  quantity  of  canceled  ^50  and 
%  100  May  and  August  Checks,  which  must  originally  have 
been  in  the  sealed  box  which  came  from  the  Bank. 

But  what  became  of  the  shoe-box?  The  uncanceled  May 
and  August  Checks,  whether  deposited  in  it  or  not,  plainly 
must  have  gone  with  it.  The  last  known  of  it,  itis  in  Matteson's 
hands  in  1853.  The  Checks  proved  by  the  chain  of  evidence 
to  have  been  deposited  in  it  or  in  the  trunk,  on  in  both,  at  the 
Canal  ofiice,  in  1853 — and  which  are  not  now  found  in  the 
—8 


68 

trunk — turn  up  again  in  Mattcson's  hands  in  1857.  Is  any 
explanation,  8upi)orted  by  evidence,  given  of  the  manner  in 
which  he  came  by  them?  Is  any  satisfactory  explanation  giv- 
en— or  attempted — for  the  disappearance  of  the  box?  Is  any 
serious  effort  made  to  find  a  single  one  of  the  pretended  parties 
in  whose  names  the  Checks  now  found  to  be  purloined,  were 
funded  i  Has  a  single  one  of  the  many  parties,  who,  it  is 
chiinied,  sold  these  Checks  to  Matteson,  presented  himself, 
although  this  investigation  luis  been  notorious  from  one  end 
of  the  Union  to  the  other?  Has  any  effort  been  made  to  find 
one  of  them?  Have  they  been  advertised  for  and  requested 
to  come  forward  ?  They  are  certainly  not  all  rogues,  and  the 
statement  of  one  or  two  of  them  would  go  fai-  to  explain  this 
mystery.  Has  the  fact  ever  been  developed,  beyond  a  doubt, 
that  any  one  else  besides  Matteson  has  ever  held,  or  now  holds, 
any  part  of  the  $  60,000  or  $  70,000  of  this  class  of  indebted- 
ness still  missing? 

In  addition  to  all  this  evidence — the  uncontradicted  and 
concurrent  testimony  of  men  having  held  high  official  positions 
and  of  unim])eached  character — there  is  this  remarkable  fact, 
in  itself  unanswerable  and  overwhelming:  that  all  of  the  gen- 
uine Checks  of  the  May  and  August  issues,  1831),  presented  for 
payment  a  second  time  by  funding,  have  been  so  presented  by 
Matteson.  If  these  Checks  were  thrown  upon  the  market  and 
were  received  in  the  ordinary  course  of  business,  were  not  oth- 
er dealers  as  liable  to  receive  them  ?  Yet  we  have  no  evidence 
that  they  have  ever. been  offered  to  others — certainly,  none 
that  any  one  else  has  ever  funded,  or  attempted  to  fund,  a  sin- 
gle dollar  of  them.  Mr.  Sanger,  it  is  true,  thought  he  had 
bought  some  such  in  New  York,  but  he  was  not  clear  upon 
this  point,  and  did  not  know  the  difference  between  the  May 
and  August  issues !  ISo  one  else  claims  to  have  seen  them 
until  they  made  their  appearance  in  the  Fund  Commissi(jner's 
Office.  They  are  presented.  Check  after  Check,  by  the  same 
hand,  until  more  than  §200,000,  of  principal  and  interest,  have 
been  funded,  and  it  seemed,  almost,  that  "the  end  is  not  yet." 

Eut  if,  by  contrived  evidence,  by  impudent  suggestion  or 


69 

villainous  insinuation  the  suspicion  of  liaving  abstracted  these 
Checks  could  be  fastened  on  a  dead  man^  (the  ever  ready  ex- 
pedient of  knaves,)  it  would  still  be  left  to  explain  how  they 
came  into  Matteson's  hands — it  would  still  need  to  be  explain- 
ed how  he  came  to  purchase  clean  blank  scrip,  with  untrim- 
med  edges,  and  running  in  consecutive  numbers — it   would 

still  be  to  explain  why  he  procured  the  bonds  to  be  issued  in 
the  names  of  fictitious  persons — it  would  still  be  to  exphun 
how  the  Scrip  escaped  from  a  box  which  the  witnesses  testify 
was  sealed,  and  presented  no  sign  of  having  been  opened  until 
opened  by  McRoberts  and  its  contents  delivered  to  Matteson — 
it  wonld  still  be  to  explain  wluit  had  become  of  the  shoe-box  — 
an  almost  endless  number  of  mysterious  questions  would  spring 
up,  demanding  a  solution. 

Before  the  Grand  Jury,  as  shown  by  the  minutes,  there 
were  some  singular  exhibitions.  The  vacancies  in  the  Grand 
Jury,  instead  of  being  filled  by  the  Court  from  the  panel  of 
the  County  Court,  as  i-equested  by  the  Jurj^,  was  tilled  from 
the  ^'■bystanders.''''  These  added  Jurors,  as  will  be  seen  by 
the  votes,  with  a  single  exception,  voted  steadily  against  find- 
ing a  bill,  and  this  exception  changed  his  vote  on  the  second 
ballot.  Then,  there  was  the  exhibition  of  the  lawyers  of  the 
implicated  party,  through  the  Prosecuting  Attorney,  and  with- 
out rebuke  by  the  Court,  either  at  or  after  the  fact,  boldly  in- 
terfering with  the  Jury  to  prevent  an  indictment — the  indig- 
nant demonstrations  of  jurors  who  talked  about  bribes  being 
offered  them,  then  quietly  cooled  down  and  changed  their  votes. 
Last  came  the  exhibition  of  votinc:  an  indictment  and  recon- 
sideriiig.  It  is  matter  of  notoriety  that,  after  all  the  evidence 
was  in,  an  indictment  was  voted  by  sixteen  to  seven,'  though 
this  vote  was  informal,  and  was  not,  therefore,  entered  upon 
the  journal.  Next,  without  additional  evidence  or  argument, 
a  reconsideration  was  had,  and  an  indictment  again  voted,  by 
thirteen  to  ten.  A  new  reconsideration,  and  an  indictment 
by  twelve  to  eleven.  Still  another  reconsideration,  and  an  in- 
dictment refused,  hj  eleven  to  twelve/  After  all  this,  which 
consumed  two  entire  days,  as  shown  by  a  note  by  the  Foreman, 
the  Prosecuting  Attorney  presented  the  draft  of  an  indictment, 
with  the  sno-o-estion  that  it  mii>;ht  be  ''io-nored  !"  The  suff- 
gestion,  which  would  have  cast  off  future  investigation,  was 
not  acted  upon,  however. 

And  thus,  for  the  present,  this  curious  case  rests — the  in- 
dividual found  in  possession  of  the  booty  standing  acqm'tted, 


60 

^v^t^lOut  being  re<i[uircd  even  to  explain  how  lie  came  by  it; 
while  those  who  dared,  in  justice  to  the  interests  otlthe  pe<>])le 
of  the  State,  to  ask  for  an  investigation,  are  driven  to  defend 
themselves  for  doing  so  ! 

The  case  is  a  most  remarkahle  one — remarkable,  in  view  of 
the  magnitude  and  boldness  ol  the  fraud  and  the  metliod  of 
its  accomplishment — remarkable^  in  view  ot  the  financial  rep- 
utation and  political  and  social  position  of  the  party  most 
deeply  (if  not  alone)  implicated — remarkable,  in  view  of  the 
absence  of  ordinary  motive  or  temptation  (in  necessity,  at 
least,)  to  the  commission  of  such  a  crime — remarkable,  in  its 
history  before  the  Grand  Jury;  in  the  means  employed  to 
stitle  investigation,  and  their  apparent  success  ;  in  the  repeated 
findings  and  reconsiderations,  without  apparentimotive  or  rea- 
son for  the  change,  such  as  might  be  furnished  by  the  acquisi- 
tion of  new  information ;  in  the  omission  of  sworn  officers  to 
discharge  a  plain  dut}^  so  long  as  there  was  any  prospect  that 
an  indictment  would  be  found  ;  and  in  the  proffering  of  the 
bill  when  it  could  be  employed  to  the  advantage  of  the  impli- 
cated part}^ ;  in  the  impudent  interference  of  the  counsel  of 
the  implicated  party  in  endeavoring  to  influence  the  Grand 
Jury,  and  introduce  witnesses  for  the  defence,  as  if  on  a  final 
trial,  although  the  law  expressly  declares  that,  "  in  all  com- 
plaints exhibited  before  the  Grand  Jury  of  any  county,  they 
shall  hear  the  vntnesses  on  hehcdf  of  the  ])eo])le  milyf  and, 
lastly,  it  is  remarkable,  in  the  incessant  abuse,  both  during 
and  since  the  investigation,  of  every  person  suspected  of  a  de- 
sire for  a  thorough  exposure  of  all  the  facts,  in  order  that  sus- 
picion may  fasten  upon  the  really  guilty  party. 

In  view  of  all  this  sworn  evidence  bearing  in  the  same  direc- 
tion, with  nothing  to  directly  contradict  or  discredit  it — every 
part  of  which  is  not  only  in  harmony  with  and  corroborative 
of  the  other  parts,  but  all  of  which  is  corroborated  by  whatever 
is  purely  circumstantial  in  the  case — what  is  the  conclusion  of 
the  whole  matter?  Let  each  intelligent,  candid  and  un])reju- 
diced  man,  having  read  and  weighed  the  testimony,  decide 
for  himself  what  conclusion  is  possible  and  inevitable. 

The  purpose  announced  at  the  beginning  of  this  article  has 
been  fulfilled.  The  important  and  leading  facts  and  circum- 
stances of  the  case  have  been  placed  before  the  public  as  fully 
as  was  consistent  with  reasonable  limits,  and,  at  the  same 
time,  as  clearly  and  succinctly  as  possible.  The  matter  is  be- 
fore the  public,  to  be  judged  by  the  simplest  rules  of  evidence 
and  the  irresistible  logic  of  the  facts. 


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